Turkey’s Kardemir has successfully opened and closed its billet sales in the domestic market since, according to market players, “The mill’s prices are reasonable, not high, not low.” In the meantime, the mood in the import segment is characterized by some degree of confrontation: the suppliers are aiming to achieve the earlier-declared price increase due to the limited number of offers, while some buyers, mainly rebar producers, are still reluctant and are seeking discounts on the previous levels.
Kardemir opened its billet sales in the domestic market with a $15/mt price increase from mid-August to $525-535/mt ex-works depending on the steel grade. The sales were closed soon after, with around 55,000-60,000 mt sold, which is considered to be a good result. Other mills in the Turkish domestic market, particularly in the Iskenderun region, are selling small volumes at $530-535/mt ex-works, with slightly higher levels reported in the Izmir region.
In the import segment, ex-Russia billet for immediate shipment is on offer at $505/mt FOB Novorossiysk, up from sales at $490/mt FOB around two weeks ago. The freight for these cargoes is estimated at around $22/mt to Izmir and $27/mt to the Iskenderun region. Other billet suppliers, who are mainly selling ex-Donbass material with shipments from Russia, are targeting to sell at $500-505/mt CFR, versus the previous deal at $485/mt CFR to a large Turkish producer. “The level is logical as per rebar prices, and also considering the fact that there are literally very few offers in the market,” a source told SteelOrbis. However, Turkish buyers are taking their time to conclude deals and “are trying to speculate on the earlier available levels in order to get discounts,” a trader commented. Some other sources believe the ex-Donbass cargoes may be accepted in Turkey at around $490-500/mt CFR max.
The SteelOrbis daily reference price for ex-Russia billet remains at $470/mt FOB, stable from yesterday, September 5, and up $12.5/mt over the past week.