Turkish hot-rolled coil export prices continued to firm on springing demand in southern and eastern Europe and robust purchasing at home. Despite the on-going anti-dumping investigation into Turkish flat products in the EU, the volume of enquiries indicates that the possibility of retroactive action is low, and with no offers from alternative destinations, there are many sales taking place, Kallanish hears.

Turkish mills' offers to Europe now stand at around $520-525/tonne fob, having increased in the end of the week from around $510-515/t achieved sales prices. One mill was heard to have sold just under 10,000t at $510-515/t fob in the beginning of the week, and increased price to $520/t fob on average on Friday, all from October rolling books.

Another producer was heard to have sold just under 50,000t to Italy for November shipment, and withdrew, having almost closed its November export allocations in one week. The highest price achieved was $520/t fob, but the mill still has many customers looking for material in the south and east of Europe. The third Turkish supplier holds offers at $525/t fob, and isn't concerned with lowering the price, traders say, apparently confident the material will find its buyer.

European HRC market recovery has been long awaited, and appears to be delivering all that was expected - and more. Amid volatility and uncertainty brought by Covid-19, the balance appears to have shifted finally to the point when demand outweighs supply, as output is still lagging and alternative imports are not available, enabling Turkish mills to take back some of the market share they have relinquished so far this year, traders note.

The strengthening of the Euro against the US dollar following the US Federal Reserve decision to keep interest rates close to zero for a longer period, has also contributed, one sell side source said. The Turkish Lira has strengthened slightly against the US dollar last week, but more strengthening is expected to keep Turkish mills' costs in check, the source added, as the majority of feedstock is imported in US dollars.

Overall, market participants are expecting ongoing strength in HRC segment, despite China's rain season expected to dampen sentiment there in September. As European recovery is expected to boom, and be followed by the US market shortly, winter has the potential to keep prices at plateau, if not full bullish dynamic, sources say.