Most of the billet buyers in Turkey have been in a wait and see stance this week, particularly not being interested in most of ex-Asia offers for September and October shipments, since the delivery term is too long and risky for them. Still, some stressed cargo from Malaysia has been sold to Turkey, according to sources, along with some transactions seen from the Black Sea region. “Rebar business is going worse and really there is not much hope for the seasonal rebound in fall, so to buy today for [billet] deliveries in end-of-October and November does not make much sense, at least for 50,000 mt lots,” a trader shared his opinion with SteelOrbis.
Ex-China billet offers to Turkey have increased by $3-5/mt over the week and currently the level is assessed at $470-473/mt CFR for September shipments, attracting no interest from Turkish buyers. Indonesia is indicatively at $440/mt FOB for October shipments, which makes around $478/mt CFR and non-attractive as well. However, according to sources, a 20,000 mt 150 mm billet cargo from Malaysia was traded to Turkey at $465/mt CFR Iskenderun, but was initially offered within the past couple of weeks at $490/mt CFR. “Good deal for the buyer, but should be a loss for the trader,” a source commented.
Latest realistic billet offers from Ukraine have been reported by the market players at $490/mt CFR, in line with the past week, but for September shipments, which is a tad early for the Turkish buyers to purchase. Still, one of the mills is offering billet at around $515/mt CFR for August.
A few deals for ex-Russia and ex-Donbas (from occupied Ukrainian plants) have been confirmed at $450-455/mt CFR Turkey this week. This price translates to around $430-432/mt FOB depending on volume and producer. “Exporters attempted to increase offers [last week], but latest deals signal that the market is stable,” a market source said. Last week, offers have been mainly at $435-440/mt FOB. Market sources do not believe that ex-Russia billet prices may be at $460/mt CFR and above in the near future, considering rather stable scrap. The SteelOrbis reference price for ex-Russia billet has been settled at $430-437/mt FOB Black Sea with the midpoint at $433.5/mt FOB, down by $4/mt since late last week.
