Domestic and import billet prices in Turkey have finally indicated an upturn in offers and bids, following the higher-priced scrap transactions reported in the market this week. Many market sources are positive regarding next week’s developments, specifically taking into account that the availability of billet now seems limited and that the large CIS-based mills are expected to first try their chances in sales to China.
In the domestic market, some mills in the Marmara region have started testing $650/mt delivered levels, while the previous booking range was at $620-625/mt delivered, as SteelOrbis reported earlier. A supplier in the Karabuk region is also thinking of offering $645-650/mt CPT, sources say. In the meantime, producers in the Iskenderun region are offering at around $635-645/mt ex-works, following sales of around 40,000 mt at $625-627/mt ex-works. Still, the situation in the local rebar market is still unfavorable. Although prices have increased to $680-690/mt ex-works, the gap is still too narrow to absorb a significant rise in billet prices. Accordingly, the workable prices for billet may still be limited.
In the import segment, traders’ offers to Turkey have increased by $20/mt over the past week to $625-635/mt CFR depending on the region. Moreover, the lower end of the range seems already hard to find as the week approaches its end. Some sources report that there are bids and small sales to the Izmir region at $630-635/mt CFR Izmir. In the northern part of Turkey, bids are at $615-625/mt CFR, with potential to increase next week. “I think this level is workable now, but the thing is there is not much allocation available for billet,” a trader told SteelOrbis. In addition, there has been talk in the market that, due to the approaching winter conditions, there may be some issues as regards shipping operations from the region.
Ex-CIS billet prices have increased by $5/mt on average to $600-615/mt FOB or $607.5/mt FOB as a midpoint, after a rebound in Turkey and higher prices in China on the first day after the holiday.