Billet trade in Turkey remains under pressure from the price declines in the scrap segment and from low demand and prices for rebar. In addition, the freight rates, though rolled back a little, are still significant and keep preventing CIS-based suppliers from receiving the needed margins and are impacting their competitiveness. As a result, local and import billet prices have dipped in Turkey this week.
In the import segment, offers from the CIS have decreased by around $10-20/mt over the past week to $630-645/mt CFR in offers. However, bids have been mainly voiced at $620-625/mt CFR and some suppliers have accepted to sell 3,000 mt lots at $620-622/mt CFR Bartin for prompt shipment. However, the big CIS-based mills are still resisting these levels since it would mean $590-595/mt FOB levels for them taking into account the current freight rates. In addition, buyers from Latin America have been paying better levels - the most recent deals were closed at $605-610/mt FOB.
In the local market in Turkey, prices decreased by around $10/mt over the past week to $630-640/mt ex-works depending on the region. Local producer Kardemir has opened sales at $638-640/mt ex-works depending on the steel grade, but managed to sell only around 25,500 mt. Some sources expect the supplier to reopen sales next week at a price close to $625/mt ex-works in order to generate sales.