This week, import billet prices in Turkey have been fluctuating, depending on scrap prices, delivery terms and the changing mood in the rebar segment. However, overall, having inched up from last week, they have remained generally stable by the end of the current week, supported by the limited supply. Next week, however, sources expect there may be some strengthening of offers, particularly for prompt shipments, in line with the import scrap price trend.
Billet allocation from Russia, except for prompt shipment cargoes to be offered actively next week at close to $525/mt CFR, remains significantly limited. Large mills are considered to be out of the market currently, mainly focusing on the local business. “With the rouble at 90-92 to the dollar, they do not have much interest in exports, with the export duty as well,” a trader told SteelOrbis. Last week, there was a $510/mt ex-works billet sale in Russia’s domestic market, which is higher than the achievable FOB level, which remains at $490-495/mt FOB as per the SteelOrbis daily reference price.
As for ex-Donbass billet, there have been all kinds of rumors this week regarding offers and possible deals, with some expectations for the realistic price to be hovering at around $515-520/mt CFR Turkey for December production. However, by the end of the week the workable level has settled at $510-517/mt CFR, with a couple of deals confirmed at the upper end of the range. Next week, the price level for import billet may be higher, given the recent rise in scrap transaction price levels.
Aside from Russia and Donbass, the number of billet alternatives in the Turkish market is very limited. According to sources, Algerian billet is on offer at $530/mt CFR for December shipment, most probably from an earlier booked position at $501/mt FOB for 20,000 mt. Asian billet is at $520-525/mt FOB with freight evaluated at $35/mt, which, together with late January delivery, is not an option for Turkish mills. As reported earlier, at the end of last week Ukraine had sold around 15,000 mt of billet at $530/mt CFR.
In the domestic market in Turkey, Kardemir has traded over 30,000 mt of billet this week at $543-553/mt ex-works, while in other regions the prices are at $545-555/mt ex-works. Only one sale has been registered in the Iskenderun region, at $563/mt ex-works, but for a volume of only 1,000 mt.