Stronger scrap prices fixed in Turkey have resulted in a better mood in the billet segment. By the end of the week, higher offer levels have been reported, in both local and import prices.
In the domestic market, billet offers in Iskenderun have increased by around $10/mt since earlier this week to $370-375/mt ex-works. In the Izmir region, mills’ prices are reported at $365-370/mt ex-works from some mills, while induction furnace-based producers’ prices are around $15/mt lower than that, SteelOrbis has learned. In Karabuk, according to sources, offers are at $355-360/mt ex-works. However, demand has been silent, mainly as the price gap with the rebar is too narrow, making it possible to buy only for profile producers.
In the import segment, ex-CIS billet offers are down to $345-355/mt CFR depending on the region, versus $355-365/mt CFR in the majority of offers seen last week. However, as scrap prices have firmed up, by the end of the week billet offers have started to come within the range of $350-360/mt CFR. The level is considered hardly acceptable for Turkish mills as they would still prefer to run on scrap and would hardly purchase anything above $340/mt CFR. Merchant bar producers, however, may be in a position to accept levels higher than that, though they are expected to seek semis for prompt shipments, SteelOrbis understands.