Some certain shortage of billet supply has been seen in Turkey over the past two weeks, resulting rather from the shortage of raw materials and reduced capacity, than from active demand for semis and finished steel. As a result, pricing in the market remains firm, supported by certain positive sentiment in scrap.
Somewhat limited allocation has resulted in more active inquiries from the Turkish side, especially from the re-rollers for small lots. The current import offers are mainly reported at $375/mt CFR and above while the material from the east of Ukraine is quoted at around $360/mt CFR. However, the lower price did not trigger interest among the buyers as some sellers have previously not performed. As a result, the volumes with the relatively prompt shipment are expected to be booked within $370-375/mt CFR. The bids from the steel producers are mainly reported at $365/mt CFR and below while last week a total of 50,000 mt was closed at $368-370/mt CFR.
In the local market billet for prompt deliveries is in demand in Iskenderun region with offers reported at $380-385/mt ex-works. In Izmir prices vary at $380-400/mt ex-works, latest deals were closed a week ago at $370/mt ex-works, SteelOrbis has learned. Kardemir is expected to open new billet sales in the domestic market shortly.
Billet export offers from Turkey are scarce and are voiced at no lower than $380/mt FOB for December shipments. However, players doubt there would be any activity above $365/mt FOB, SteelOrbis understands.