Turkey’s hot rolled coil export market has received a boost from returning Chinese demand, with several sales made to other destinations and the general volume of inquiries increasing, market sources tell Kallanish.

One mill made a large volume of sales towards the end of last week, thus closing all its September-rolling allocations and only having small volumes left for domestic buyers, it says. The sales were to southern Europe and North Africa, ranging from $430-443/tonne fob Turkey. The mill is also in negotiations to sell to Asia, having tabled offers at $430/t fob minimum. However, since it has very limited allocation, the order may go to any other Turkish mill.

Enquires are not only coming from China and ASEAN, but Africa and Europe too. One mill was heard to have sold a large lot to China, its second one, at $410/t fob, resulting in around $450/t cfr China, although, depending on the volume, freight could be lower, traders note. The mill's prices can be lower than other mills by $10-20/t at times, and some traders do not rule out the sale. Some local sources, however, say it could sell “…at much higher prices in the domestic market.”

If the sale was made at the beginning of the week, the producer had no way of knowing the domestic market would pick up to such an extent. This would explain its decision to sell at such a low price, a local observer says.

Demand from southern Europe is getting more active, and mills are pressing for $425-435/t fob, depending on volume and destination. As news of European domestic price increases spreads, buyers are anxious to secure material before this quarter's quota runs out. Northern European stockists are also enquiring, but they expect lower prices, sources note. Overall, the European price increase is still tentative, which is somewhat slowing bookings.

Demand for cold rolled coil is muted, as major consuming industries are still battling weak demand for their products, which is struggling to rebound. Export prices remain at $490-495/t fob Turkey, with a few very small enquiries and no sales.