Domestic billet prices have weakened over the past week in Turkey, following some slowdown in the rebar segment and expectations for the import scrap trend being mainly negative for now. Import trade has been limited with only small lots reportedly booked at the same prices as last week.
Most Turkish mills, including those in the Iskenderun and Karabuk regions, have been offering billet locally at $410-415/mt ex-works, versus $415-425/mt ex-works valid last week. Buyers have not been overly active since the rebar trade in Turkey has been weakening amid some currency issues and political tensions. Information regarding a $415/mt ex-works Iskenderun sale has been circulating in the market, but it has not been fully confirmed by the time of publication.
Turkey’s Kardemir announced its new billet sales on March 3 at $411/mt and $415/mt ex-works (at a $1 = TRY 6.21 exchange rate), with minor lots having been sold on the same day. Since the lira has strengthened today, March 4, to $1 to TRY 6.09, the US dollar equivalents of Kardemir’s offers have increased to $419/mt and $424/mt ex-works, which are not workable. Unless the exchange rate takes a nosedive again, Kardemir is expected to revise its sales prices shortly, SteelOrbis understands.
In the import segment, Turkey has mainly been receiving offers at $405-415/mt CFR for March-April shipments, the same as a week ago. Some small cargoes are being booked at slightly above $400/mt CFR for shipments in the near term.
