While import scrap prices remain high, some Turkish buyers are seeking to buy billet, both import and domestic billet. Sources have reported two ex-China billet cargoes booked since last week, in addition to the ex-Malaysia billet lots sold at the end of the same week. Interest in local billet has remained at moderate levels, amid softer but still relatively high rebar prices.
In Turkey, according to sources, the most recent import deal was closed for Chinese billet for early February shipment at $475/mt CFR Marmara, which is considered to be a high level at the moment. However, it is reported that the cargo has a higher freight of around $36/mt for the 45,000 mt total volume. In addition, the lot contains billet of high manganese content, which is also extra. As a result, the price level in the deal translates to around $467-468/mt CFR base, sources estimate. In addition, at the beginning of last week, a 50,000 mt lot was sold at $465/mt CFR.
Currently, considering the drop in futures prices, ex-China billet offers for February shipments are available at $470/mt CFR, down from $475-480/mt CFR a day earlier. “Chinese billet has the shortest lead time now from all Asia, since Indonesia and Malaysia are already [offering] for March,” a trader told SteelOrbis. Sources expect that Turkish mills would currently be looking to book at $460-465/mt CFR, at least for now.
Ex-Ukraine billet is now available from one of the producers at $505/mt CFR, up $5/mt from the earlier levels. The cargo is for February shipment.
Locally, most billet offers in Turkey are at $515-525/mt ex-works levels, slightly softening in the regions where the rebar trade has been slowing down. However, in the Marmara region some offers are still voiced at $525-530/mt CPT, while in the Iskenderun region around 20,000 mt were sold last week at $529/mt ex-works, but for prompt deliveries. Other suppliers in this region are indicating $515-522/mt ex-works, SteelOrbis has learned.