Business activity in Turkey’s square billet market has diminished by the end of the current week, following the sizeable drop in import scrap prices. Buyers are expecting some significant discounts for billet as well, though sellers are cautious regarding their next move.
Local billet prices in Turkey are currently set at $420/mt ex-works on average, which is at the lower end of last week’s range. Bids, however, moved down to $410/mt ex-works and below, producers report. Sentiment is generally negative and the expectation is for billet prices to settle at $400-405/mt ex-works in the coming weeks.
In the import segment, the number of offers is scarce, with prices mainly reported at $415-425/mt CFR. Buyers are waiting to make a move as the recent drop in the scrap segment has been sizeable, and so they believe that discounts should be granted for billet. Sellers, mainly first-tier mills ex-CIS, are currently cautious, waiting for further developments in Turkey’s scrap imports, SteelOrbis understands. Last week, deals for prompt shipments were mainly closed by traders for small lots at $410-415/mt CFR, with one 10,000 mt deal reported at $413/mt CFR Iskenderun.