The sluggish export market for Russian hot coils: Both suppliers and buyers seek alternative markets to replace them

We have learned that the HC260Y steel price of Russian export hot coils has been flat recently, and most suppliers still focus on other markets, while buyers from Türkiye continue to choose local or imported products from other countries as alternatives.

It is reported that nearly all Russian hot HC260Y steel coil resources have been sold in the mainland recently, and only one exporter is active in the export market, offering 560-565 dollars/ton FOB, equivalent to 580-585 dollars/ton CFR Türkiye. Due to limited options for further export of re rolled products, the sanctioned hot coil resources lack competitiveness compared to resources from other regions. The current feasible price is 550-560 US dollars/ton FOB Türkiye, that is 570-580 US dollars/ton CFR Türkiye.

In addition, Türkiye HC260Y steel has introduced a policy of 15% tariff on imported hot coils. Only companies certified by Türkiye's processing system with supplied materials can reduce or exempt the tariff on exported final products. Due to the weak export market, Türkiye's import demand is very low. Importers prefer to buy local products, thus avoiding any export obligations. Türkiye is currently in a situation of rising interest rates and limited bank credit. It is difficult for the financial sector to support the price rise. Buyers are waiting for the price to fall further. At present, the price of Türkiye's domestic trade hot roll hovers in the EXW range of 605-620 dollars/ton, with a weekly decline of 10-15 dollars/ton.