Prices for import billet in the Turkish market have posted further declines as ex-Asia offers have decreased further and buyers have started to show some interest, even though the lead times are long.
According to sources, a deal for 40,000 mt of ex-Indonesia billet was done at $522-523/mt CFR last week, though at least one source said that the price was at $520/mt CFR, with the freight at $35/mt from Indonesia to Turkey for a large vessel and the route taking 25-27 days. In addition, there has been a rumor this week of another sale at $515/mt CFR, also for Indonesian origin. Though this information could not be confirmed by the time of publication, market sources believe it is possible, as the mill’s FOB deal prices have already reached $480/mt FOB.
Also on Monday, there were some ex-China billet offers to Turkey at $510/mt CFR, but then they were withdrawn and, with China at holiday on Thursday and Friday, there are no fresh offers expected this week.
Asian billet prices have been the most competitive in the market lately, though they are not suitable from smaller buyers. Tightened competition with Asian sellers has pushed ex-Russia billet prices down as well, though most Russian suppliers are still inactive. “There are no fresh deals from Russia to Turkey… Producers don’t want to sell, while traders are saying that including expenses the current price is $490/mt FOB maximum, and only for not big volumes,” a market source said. This FOB price translates to $510/mt CFR Turkish Black Sea region. Some offers for prompt shipment are still at $540-545/mt CFR, but “for May shipment I did not hear any offer that may be an indicator,” a Turkish mill said. The SteelOrbis reference price for ex-Russia billet has come down by $17.5/mt since last week to $490-495/mt FOB Black Sea.
Offers for ex-Iran billet to Turkey have been reported at $450/mt FCA, translating to $495-500/mt delivered to Karabuk.
