Billet market activity may revive soon in Turkey, based on Turkish mills' attempts to raise local rebar prices due to price increases in the scrap segment. Still, while rebar demand is yet to react widely and positively to the mills' new targets, billet buyers may choose to restock, but with cheaper origins with shorter lead times.
As local rebar prices in Turkey have now reached $575-595/mt ex-works depending on the region, some better demand might be seen for ex-Russia billet and at slightly higher prices. The SteelOrbis reference price for ex-Russia billet has improved by $5/mt to $465-470/mt FOB Black Sea. The latest offers in Turkey have been at $490-495/mt CFR. However, while last week most buyers were reluctant to accept such levels and the previous deal was rumored at $480-485/mt CFR, with the recent increase in scrap prices, these price levels have become fully workable. “It seems this [higher scrap prices] will push people to look for Russian origin material due to its price advantage,” a Turkey-based source said.
Iranian billet prices are at $475-480/mt CFR and $465-470/mt DAP, increasing by $5-10/mt over the past week. “DAP cargoes are being sold daily anyway, monthly volumes have reached 60,000-70,000. As for bulk cargoes, I assume more will go to the Far East by August as better pricing has started to be heard,” a trader told SteelOrbis.
Asian billet is not in favor among Turkish buyers due to long lead times and high offers. China is still at $515/mt CFR for September shipments. “Scrap now seems to be at $375/mt, and the difference is $140/mt. So, not sure if it will be interesting to buy [China] or not,” a source said.
In the local Turkish market, billet prices have settled at $530-540/mt ex-works, but mills are not willing to meet buyers' bids now at $520-525/mt ex-works due to the higher targeted rebar prices. Some mills in the Izmir region have already started to offer at $550-555/mt ex-works.
