Domestic and import billet prices have increased in Turkey over the past week, supported by firm scrap prices, the relaxed positions of CIS-based mills and the somewhat positive situation in the domestic rebar market.
Billet offers in the Iskenderun region of Turkey have moved up by $5/mt over the past week to $400-405/mt ex-works. A fresh 10,000 mt sale has been reported at $400/mt ex-works, while last week 3,000-5,000 mt lots were sold at $392-394/mt ex-works, as SteelOrbis reported. Offers in the Marmara region are reported at $395-400/mt ex-works; in the Izmir region, according to some sources, billet prices have been set at $410-415/mt ex-works, while some buyers have said that offers are at least $10/mt higher. “There is a certain lack of billet and everyone sees that rebar demand has been improving,” a trader explained. In the Karabuk region, local mill Kardemir announced $390-395/mt ex-works earlier this week. However, only minor lots have been traded. “People would hardly be very active as they just booked $365-370/mt ex-works from them two weeks back,” a source mentioned.
The more positive local billet and rebar segments have provided some room for higher import prices. The levels have increased by $10-15/mt over the past week to $385-395/mt CFR depending on the region. It is worth mentioning that mainly traders are in the market to sell these days for July-August shipments. Offers from CIS-based mills are rare and normally set at the higher end of the range as the large producers are not under much pressure, having sold sizeable lots to China previously, as SteelOrbis reported.
Turkish mills are barely present in the export markets these days and prefer to sell billet in small parcels locally rather than to try trading large lots to China or Southeast Asia. In the meantime, the North African market remains mainly subdued. The indicative level of offers from Turkey is estimated by traders at $395-400/mt FOB.