Billet buyers based in Turkey’s Iskenderun region remain actively interested in purchases in the local market. More deals have been concluded in the area since yesterday and the prices have moved up in a few steps, reaching a new high. The rapid price increase has created some confusion in the market, among overseas billet suppliers to Turkey in particular.
A steel producer from the Iskenderun region sold 12,000-17,000 mt of billet locally at $460/mt ex-works and 5,000 mt at $463/mt ex-works yesterday, up from deals at $450/mt ex-works closed last Friday. Today, November 17, however, the same producer has sold 10,000 mt at $470/mt ex-works. Some sources, however, state the lot consisted of 5,000 mt of rebar grade billet and 5,000 mt of wire rod grade billet and estimate the base price at $467.5/mt ex-works. All deals were closed for January production. The billet offers in the region have increased to $475-480/mt ex-works. The market is waiting for Kardemir to open fresh sales this week, with the price expected to be at $465-470/mt ex-works.
The rapid price increase in Turkey creates confusion among billet suppliers from the CIS. Their offers have increased by another $5/mt to $455-465/mt CFR, while the highest bids have been reported at $450/mt CFR Turkey’s northern region.