According to market sources, after Turkish steel producer
Kardemir opened its billet sales on February 18, the initial liveliness of activity in the local Turkish
billet market was replaced by sluggishness in the following days.
Billet supplies in the Turkish markets are on the low side, in line with low rebar demand, while some market sources state that import
billet prices in the Iskenderun region of
Turkey are at $400/mt ex-works for prompt sales, with some
billet transactions for small volumes being concluded at this level.
Meanwhile, although ex-CIS
billet offers are approximately at $345-350/mt FOB, there have been rumors of various buyers in the Turkish market concluding ex-CIS
billet purchases in the range of $357-362/mt CFR during recent weeks, with no new
billet transactions being heard following these sales. While import
billet transaction activity is quiet due to the lack of attractiveness of import offers, Turkish
billet buyers are willing to conclude import
billet purchases if they receive very advantageous
billet prices. At the same time, they are keeping a close eye on developments recorded in the import scrap market and on any improvements in the finished steel export markets.
Import scrap prices in
Turkey have seen some slight improvement in recent days. Furthermore, scrap suppliers are more determined to keep their prices firm as they claim that scrap prices have hit the bottom.
Billet suppliers may adopt a similar stance if scrap suppliers are successful in maintaining a firm stance on their prices. However, Chinese markets players are expected to make an aggressive return to the global market next week, following the end of the Chinese New Year holiday. Ex-China
billet offers were at $340/mt FOB on February 18 before the holiday period. However, a downward revision is expected to be seen in Chinese
billet offers in the global market as Chinese suppliers return to the market.