Given the declines recorded in import scrap prices in Turkey as well as the ongoing weakness of demand in the local Turkish finished steel market, buyers in the domestic billet market consider the future trend of the market to be uncertain. As a result, Turkish billet buyers are concluding purchases only in line with their needs.
On the other hand, Turkish steel producer Kardemir has closed its billet sales today, September 20, after selling about 63,000 mt in total. The mill had opened its sales yesterday, September 19, at the level of TRY 1,800/mt ($519/mt) ex-works for S235JR billet and at TRY 1,817/mt ($524/mt) ex-works for MT III-A billet, both excluding VAT.
Following the decreases seen in import scrap and billet quotations in Turkey, the cautious approach of buyers - mostly concluding purchases only in line with their needs - and also Kardemir’s new price levels, Turkish steel mills have reduced their domestic billet offers by an average of $5/mt week on week to $520-535/mt ex-works.
Meanwhile, ex-CIS billet offers to Turkey have declined by an average of $5/mt during the past week and are currently at $535-550/mt CFR. Turkish buyers consider CIS-based suppliers’ billet offers to be on the high side, while market sources state that Turkish buyers’ firm bids for ex-CIS billet do not exceed the price level of $520/mt CFR.
Additionally, Chinese billet offers to the international markets have declined by an average of $15/mt week on week in line with the downtrend seen in global iron ore quotations and are currently at $515-521/mt FOB. Despite the falls seen in Chinese billet export prices, demand for Chinese billet has failed to improve during the past week.
$1 = TRY 3.47