The Turkey's market for HRC has become silent over the celebration of the end of Ramadan. The Turkish replenished stocks with local material last week and will not conclude new contracts until the middle of August.
Despite the end of the strike at Isdemir, the situation in the segment stays tense. The producer will resume operations next week but is not supposed to announce new prices so far as it has lot of orders left from the period when it was idle. So, the material supply is tight in the country right now, which is beneficial for other producers.
Colakoglu Metalurji has almost closed its October order book, lifting HRC prices domestically by USD10/MT W-o-W to USD 610/MT EXW/FCA. Prices exclude 18% VAT. Still, the most recent deals for medium batches were at halt by the company at no more than USD 600/MT EXW/FCA last week.
Erdemir, a leading steel manufacturer, is also selling October material at USD 610/MT EXW/FCA/FOB, no contracts heard.
Export offers of Colakoglu Metalurji's HRC have been running at USD 580-585/MT FOB since the end of last week, whereas deals with regular clients were done mostly at USD 570-575/MT FOB in the latter half of July.
For the September month, HRC from Russia is offered to Turkey at USD 580/MT CFR, which is USD 20/MT above the tags in the Turkey's internal market including 9% import duty. The Turks will be ready to deal in case of some USD10-15/MT discounts, players suppose.
Ukraine's Metinvest International S.A. is out of the Turkish market right now and will announce new offers next week. The supplier is going to offer the material from Ilyich Steel and Zaporizhstal at no less than USD 550/MT CFR, whereas deals for August material were closed at USD 510-520/MT CFR.
Because of sluggish demand, Turkish welded pipe producers have managed to lift domestic prices by only USD 20/MT M-o-M, although the rise in HRC prices has been more essential over the period.
Stockists are keeping HR sheet quotations up as the material was mostly bought at lower prices.
Re rolling and pipe-making HR products from the CIS are subject to 5% and 9% import duty respectively when sold in the local market.
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