Turkish billet market activity is rather slow following the religious holiday and most market players are trying to assess the current situation. The general mood is closer to being pessimistic, given the absence of the positive movement in the import scrap segment and the pressure on rebar prices. As a result, while billet demand is also on the low side in Turkey, the workable price levels have decreased over the past week.
Currently, the general billet price range in Turkey is at $520-545/mt CFR depending on the origin, down $10/mt from the pre-holiday levels. Particularly, a small lot of ex-Donbass or ex-Russia billet has been traded at $520/mt CFR, while some of the current offers for the same origins are standing at $525-530/mt CFR for August shipments. In the meantime, the ready ex-Russia cargoes for immediate shipment are offered today at $540-545/mt CFR, versus $560-565/mt CFR in pre-holiday targets.
The SteelOrbis reference price for ex-Russia billet has dropped to $495-505/mt FOB Black Sea, with the midpoint at $500/mt FOB, down by $10/mt from the level seen last week. The price reflects the rare deals and offers coming for ex-Russia and ex-Donbass billets mainly for August shipment, while some Russian mills have remained absent from the export market due to Westerns sanctions after Russia’s invasion of Ukraine and the absence of big buyers in Turkey interested in purchases at the moment.
The Russian ruble has devaluated visibly since early last week and is one of the reasons suppliers from the Black Sea have decided to cut billet offers to stimulate trading. According to Bloomberg, the Russian ruble has lost almost six percent since June 26 with the rate coming to 1$ = RUB 89.54 on July 4.
“No one wants to buy now. Turks will first see scrap and only then will they determine billet prices,” a European trader said.
Along with ex-Russia and ex-Donbass billet offers, Turkey has also been receiving indications from Indonesia and Malaysia at $540-545/mt CFR, down by around $10/mt since before the holiday. “Malaysia might catch some orders at $535/mt CFR if scrap doesn’t fall and unless rebar goes much below $600/mt,” a source told SteelOrbis. In addition, ex-Iran billet offers are at $525/mt DAP.