Billet prices in Turkey lack solidity and clarity given the rather different positions of sellers, depending on whether they are under pressure to sell or not. In the meantime, while Turkish mills have been mainly concentrating on scrap purchases, the prices for which are close to bottom levels, local steelmaker Kardemir has cut its local billet prices, putting pressure on ex-Black Sea offers.
Turkish integrated mill Kardemir has opened 150 mm billet sales at $480/mt ex-works for S235JR and $495/mt ex-works for B420 steel grade, while the previous levels stood at $490/mt and $510/mt ex-works, respectively. The producer has sold 50,000 mt of billet and the price level is evaluated as being an attractive one overall. Other suppliers in Turkey, according to market reports, are at $505-515/mt ex-works.
The latest deal for billet from Donbass, the Ukrainian territory occupied by Russia, has been heard at $440/mt CFR Turkey, translating to $420/mt FOB or slightly below. “$440/mt CIF is in fact the current workable price for Turkey for CIS origin [except Ukraine, which is a clean origin]. But except for Donbass, it is unlikely that someone will confirm the same level for February shipment,” said a trader dealing with Russian billet sales. Last week, the tradable levels were at $450-455/mt CFR, with one deal heard at $449/mt CFR, signaling that lower local billet prices in Turkey are putting significant pressure on Russian sellers.
In another major market - Egypt - there has been information about a deal for a sizable tonnage at $470/mt CFR for billet with higher manganese content. “Egypt is a totally different story [than Turkey]. A price does not mean that the seller will receive the payment in time. Also, for this market it is always billet with high manganese content of a minimum of 1.1 percent,” a source said. The base price for Egypt is assessed at $430/mt on FOB Black Sea basis. “There were prices even at $520/mt CFR in deals for material than has not arrived yet, so sellers may give even below $470/mt CFR to the same customers, just hoping to receive payment for previously sold expensive lots,” he added.
The reference price for ex-Russia Black Sea billet has settled at $420-430/mt FOB, down by $5/mt on average from $430/mt FOB last week.
Asian suppliers, on the contrary, are mostly not under much pressure at present considering the deals they concluded earlier, the long lead times currently available and the approach of the Chinese New Year holiday. Ex-Indonesia indications are reported at $475-480/mt CFR (for April production), up from $470/mt CFR earlier. Chinese offers are evaluated at the same levels while most suppliers have been quiet this week. Malaysian cargoes were lastly sold at $470-475/mt CFR for February shipments, while no new offers have been reported for this origin. Sources assume Malaysia should be targeting close to $480-485/mt CFR Turkey.