Billet imports remain depressed in Turkey, export option still valid

Wednesday, 22 September 2021 17:01:33 (GMT+3)   |   Istanbul
       

Billet import talks remain scarce in Turkey as the buyers’ bids are far away from the sellers’ expectations. Some of the re-rollers have decreased their bids to below $600/mt CFR, which is not acceptable for those to sell small lots to Turkey. Those buyers, who are ready to pay higher prices for the larger lots, still have trouble in finding the offers, as the CIS-based mills are targeting to sell elsewhere at higher FOB levels.

According to sources, some of the traders and producers, traditionally selling in small lots, have been ready to deal at $605-615/mt CFR Turkey this week. One 3,000 mt lot has been traded earlier this week at $617/mt CFR Izmir, SteelOrbis has learned. Other suppliers reported that the bids were hardly above $600/mt CFR, while the lowest were at $585-590/mt CFR. “It means $550/mt FOB, there is no price that low in the market,” a source mentioned. A 10,000 mt lot ex-Russia has been heard as sold to the Izmir region at $620/mt CFR, most probably at the end of last week.

In the meantime, some of the buyers have been reportedly ready to deal at $630-635/mt CFR for large lots, most probably those, who waited too long to restock and are now being forced to pay higher levels. However, taking into account that the freight rates are estimated at $30-35/mt minimum to Turkey, the large CIS-based billet sellers find such CFR prices unattractive. Currently, they are targeting to sell to China at a minimum $605-610/mt FOB.

In the local market of Turkey, the trade is also slow, while the prices have not moved much over the week. A Marmara region-based supplier booked 35,000 mt since mid-September at $620-622/mt delivered. In Iskenderun region, the indicative prices are at 630/mt ex-works with no deals reported. In the Izmir region, the official offers are at $640/mt ex-works, therefore one of the buyers has preferred to buy from the Marmara region at $620/mt delivered. In the Karabuk region, the EAF-based seller is offering $620/mt CPT. The general offer level for the domestic billet in Turkey is at $615-625/mt ex-works, $5/mt down from the lower end over the week.

Still, despite there has been no firm export billet offers heard from Turkey, overseas sales are considered as a strong option. Taking into account the recent positive developments in the Chinese market, the possible workable level is estimated at $705-710/mt CFR. With the average estimated freight for 50,000 mt cargoes at $90/mt, Turkey might count on achieving $615-620/mt FOB.

 

 


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