The billet market in Turkey remains quite positive in terms of prices, but many market players have postponed active negotiations until after the Feast of Sacrifice holiday, most probably counting on higher workable levels. Indeed, the import scrap uptrend seems to be solid for now, while a certain lack of local billet availability and stronger rebar prices may support the import billet trade in Turkey. Still, buyers are aiming to deal for ex-Russia billet, which is the only origin currently available, at levels much lower than domestic offers in Turkey due to the sizeable risks involved.
In the domestic market in Turkey, integrated mill Kardemir has opened billet sales at $670-675/mt ex-works depending on the steel grade. As for other suppliers, there are barely any offers in the Izmir and Marmara regions. A producer in the Iskenderun region was offering $680/mt ex-works earlier this week but now, according to sources, its price is at $700/mt ex-works. As regards exports, Turkish mills are also offering quite high levels of $675-690/mt FOB, though obviously with no luck in selling. “Let’s say that for now it is more like a statement to the market than the workable price level,” a trader told SteelOrbis.
Import offers are not yet numerous in Turkey and are mostly voiced at $600-630/mt CFR depending on the supplier and the lead time. Market players expect levels $20/mt higher may be targeted after the holiday, but a lot will depend on the import scrap price trend. In the meantime, earlier this week there was an offer from a Russian producer at around $570/mt CFR, which was not transformed into an actual deal. At the end of last week, according to sources, around 20,000 mt of Russian billet were sold to Turkey by another producer at $560/mt CFR, as SteelOrbis reported.