The impact of weather weakened in August, and steel end-user sectors slightly recovered

[Turkey] Supported by price hikes in major overseas export markets and rising raw material costs, Turkish flat steel prices extended their upward trajectory. In the hot-rolled coil (HRC) segment, driven by the broader trend, domestic mills successively raised their asking prices, with quotes reaching 600–620 USD/tonne EXW. Most mills' production schedules are now fully booked into November, with only a select few still holding available volumes for October delivery. Impacted by higher marine freight rates and a seasonal slowdown in scrap collection, scrap import offers continued to climb, subsequently shifting the pricing center for downstream cold-rolled coil and hot-dip galvanized markets upward. Although end-user demand remains "quiet" and the price rally is purely supply-driven, Turkish coated products are demonstrating a clear comparative advantage in the European market, even as actual transaction volumes remain restricted by trade barriers such as EU safeguard quotas and the impending "melt and pour" regulations. On the import-export front, the Turkish HRC import price held steady at 550–555 USD/tonne CFR; as local prices climb, market optimism regarding the procurement of Chinese spot cargoes has increased. Export-wise, Turkish HRC offers underscore the material's strong competitiveness in Europe—particularly in Southern Europe—where export quotes have touched 615–620 USD/tonne FOB.

[Europe] The European hot-rolled coil (HRC) market is displaying a distinct North-South divergence: Northwest European quotes edged down to 736 EUR/tonne EXW (851 USD/tonne), while Italian prices rose by 3 EUR/tonne to 737 EUR/tonne EXW (853 USD/tonne), successfully surpassing the Northwest index. The stronger upward momentum in Southern Europe (particularly Italy) is primarily catalyzed by an escalating domestic supply-side crisis: the Milan Court of Appeal rejected Acciaierie d'Italia's (ADI) application for a suspension, upholding the shutdown order for the hot operations area at the former Ilva steelworks. Market participants expect that the plant's sole remaining operational blast furnace will be forced to halt production by the end of this month due to raw material disruptions. While Southern Europe faces this supply shock, Northern Europe is also bracing for tighter availability; notably, a major mill in the north is preparing to commence planned rolling mill maintenance. Buyers and sellers are closely monitoring how these domestic output cuts, combined with the imminent October 1st implementation of the new "melt and pour" import quota regulations, will collectively reshape the regional supply-demand balance entering the fourth quarter.

According to the Shanghai Shipping Exchange, this week, freight rates in the three major vessel type markets of the international dry bulk shipping market continued to rise, and the Far East Dry Bulk Rental Index extended its upward trend. By vessel type, the Capesize market rates consolidated at highs. At the start of the week, cargo volumes were moderate and FFA forward contracts rose, keeping rates fluctuating at highs; mid-week saw alternating changes; near the weekend, FFA declined, putting rates under pressure.