Higher import scrap deals in Turkey have naturally resulted in rebounding billet offers. The trend seems solid for now and an increase of at least $10-20/mt is expected in billet deal prices compared to early February.
In the local Turkish market, a mill from the Iskenderun region has sold over 12,500 mt of billet at $560/mt ex-works, up $10/mt over the past week. Next week, local offers in Turkey are expected to settle at $570-575/mt ex-works, but a lot will depend on the import scrap trend. “If scrap increases more than expected, we might easily see $600/mt again for billet,” a trader said.
In the export segment, indicative offers from Turkey are reported at $570-575/mt FOB with trade heard.
Import offers to Turkey are blurry since sellers are cautious in their pricing. Taking into account the intentions of CIS-based suppliers, the estimated level of offers to Turkey should be at $565-570/mt CFR minimum, while bids are expected at $20/mt lower levels for now. “Prices will surely rise and will be accepted eventually, but for now re-rollers are waiting,” a source told SteelOrbis.