Russian hot rolled coil suppliers are benefiting from the Red Sea shipping disruption, market participants inform Kallanish.

Turkish flat steel buyers are considering purchases from Russia amid concerns over sourcing from Asia via the Red Sea route. The hijacking of a vessel in mid-December carrying South Korean flat steel cargo for Turkish customers has further reinforced Turkish buyers’ decision to turn to Russia.

Numerous attacks on merchant vessels in the Red Sea have resulted in increases in freight rates and shipment delays from Asia.

A deal for Russian-origin HRC was reported at $630-640/t cfr Turkey for 50,000-60,000 tonnes bought by a reroller in Turkey during the last week of last year, according to market participants.

Russian HRC was assessed at $595-615/t fob Black Sea, widening up by $5 from $595-610/t fob a week earlier.

Despite the Red Sea shipping attacks, Turkey has continued making active purchases from China. During the first week of January, bookings for China-origin material were heard at around $615/t cfr for base price equivalent, for February shipment. Reports from trading sources indicate estimated shipments of at least 135,000 tonnes to Turkey from China in January.

The ongoing imports appear surprising to Turkey’s domestic flat steel producers, considering the investigation into HRC imports from China, Russia, Japan, and India, with the aim of reducing these imports.