Turkish HRC suppliers give discounts, win deals only locally
Turkey / Flat Products
Turkish HRC producers, facing pressure from low demand, have decreased local prices, which they were holding at
high levels for quite a long time. Thin export buying despite further price cuts has become an additional reason for
such a move in the local market. As a result, Turkish traders and end users have shown interest towards purchases
from domestic mills.
Colakoglu Metalurji has failed to achieve the price of $595-600/t EXW in the local market and decreased the offer
level to $585-590/t EXW/FCA. Prices are without 18% VAT. This week a big Turkish pipe-maker has booked around
20,000 t HRC from Colakoglu Metalurji at $580-585/t EXW, Metal Expert hears. Turkish traders have also managed
to get $5/t discounts from the producer, signing contracts at $585/t EXW from the beginning of July.
As a result, the contract price of Colakoglu Metalurji to local buyers has dropped by $10/t month-on-month. The
supplier has almost finished its August rolling HRC sales.
Erdemir Group, as market players inform, is currently offering end-September production HRC. The local price
for Erdemir coils has decreased over the past three weeks by $5/t to $580-585/t EXW/FCA/FOB. “Successful
Erdemir Group sales are more a result of pending orders, that mill is still facing, rather than high demand,” one
of the buyers told Metal Expert. Some market insiders say that Erdemir is selling large batches at the price as
low as $575-580/t EXW.
Export prices for Turkish HRC have decreased by $5/t to $570-580/t FOB over the same period, but foreign demand
is still sluggish. European countries are showing no interest in Turkish material amid more attractive offers from
alternative suppliers and oncoming summer vacation season. MENA buyers also fail to give much support to exporters
from Turkey during Ramadan.
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