The most recent deals for import scrap done to Turkey have brought significant optimism to the country’s billet market since now sellers have a good reason to increase prices. In the meantime, the number of offers, which was low last week due to the unclear market and lack of tonnages, is not plentiful today either as suppliers want to estimate the market prospects and avoid selling in a rush. For now, the mood is positive and both buyers and suppliers admit the workable levels for import billet have moved up. However, some sources are quite confident the uptrend will be short-lived.
While hardly any solid billet offer for ex-Russia or ex-Donbass origin material is heard in the Turkish market, most sources expect suppliers to voice $590-600/mt CFR, especially for cargoes of relatively “clean” origin. Small buyers’ price ideas are at $570-575/mt CFR for now, while some larger suppliers are said to be ready to pay $560/mt CFR and some sellers see these prices as a fair level to trade at. At the end of last week, the indicative level stood at $550/mt CFR Turkey. Despite the positive mood, a lot of market players are cautious in their evaluations of how high prices might go. One reason is that the uptrend in scrap might be short-lived, another is that some real business and talks should begin in the billet segment. “For now, all the action is in scrap,” a large trader told SteelOrbis.
In the domestic market, the indicative prices are at $600-610/mt ex-works, while one of the mills in the Marmara region has been voicing $630/mt ex-works. The same producer, according to sources, sold a billet lot to Izmir at close to $600/mt CFR, though last week. In addition, this week there has been a rumour about an export sale at $604/mt FOB, which is reported as being for 10,000 mt to Italy. In addition, a few buyers from Latin America have placed inquiries just recently.
Considering the relatively positive market mood and despite the lack of firm billet offers from Russia at present, the SteelOrbis daily reference price for ex-Russia billet has been increased by $25/mt since last Friday to $530-540/mt FOB. However, by the end of the week the level could change if the market gains clarity and serious talks with the buyers begin.