Prices strengthen in hot rolled coil markets
Hot rolled coil (HRC) prices in Turkiye reached strong levels on offers. Although overall sales volumes were limited, there was a general increase in purchase volumes.
As the spot market (traders) saw the price hike and strength in scrap imports, those who postponed their purchases preferred to negotiate. However, it seems difficult for the market to sustain these trends.
In addition to all these, Turkish steel buyers are planning to increase their stocks again with Chinese HRC despite the ongoing AD investigation.
Domestic HRC (hot rolled coil) ex-works prices in Turkiye have seen increases of $10-$20. Ex-works prices for February and March deliveries are hovering around $690-720. Discounts of -$5 to $10 are possible.
Spot market prices in Turkiye on 04.12.2023 as assessed by www.steelradar.com are as follows
Izmir $720 ($20 increase compared to last week)
Iskenderun (Payas) $710 ($20 increase compared to last week)
Istanbul $720 ($20 increase compared to last week)
What is happening in HRC prices in global markets?
-CHINA
Despite fluctuations in Chinese hot rolled coil futures, domestic spot prices for 5.5x1,500 mm Q235 hot rolled coil were steady around 3,952-3,973 Yuan/ton ($558-560/ton) in Shanghai, sources told SteelRadar. Meanwhile, thick steel sheet prices also increased, indicating that the Chinese flat steel market remains resilient despite weak futures. The January 2024 hot coil contract on the Shanghai Futures Exchange also saw a modest increase of 20 Yuan/ton from Thursday.
Current offers are;
China HRC (SAE1006) $605/ton CFR India
HRC FOB China was recorded at $574.
-RUSSIA
Increasing demand for hot rolled coils is pushing up Russian slab prices in the Black Sea market. Severe weather conditions in the region and Russian ports may lead to shipment delays, causing some exporters to change their routes from the Baltic region.
Russia HRC $600/ton FOB Black Sea (Turkiye)
-VIETNAM
Vietnam's Hoa Phat increased its Hot Rolled Coil prices by US$30-35/ton in February-March.
-JAPAN
Japan's Nippon Steel and Maruichi Steel plan price hikes in the first quarter of 2024.
-TAIWAN
While Taiwan's CSC sees a positive turnaround in the steel market, citing a successful recovery, raw material costs are resisting the downturn with iron ore at US$130/ton and coal above $300/ton.
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