Business activity is still mainly seen in the local segment of Turkey’s billet market, while the import trade has been almost non-existent due to the wide gap between offers and bids. While the key CIS-based mills have been trying to increase prices due to demand coming from alternative destinations, the limited pricing for rebar and scrap in Turkey has been restricting their bullish mood in this market.
According to sources, an Iskenderun region-based steel producer has recently sold a total of 30,000 mt of billet to the domestic buyers within the range of $587-589/mt ex-works, down from $590/mt ex-works fixed early last week. Such a local price does not leave much chance for CIS-based sellers to close deals to Turkey, especially taking into account that most of the large mills are aiming to sell at $600-610/mt FOB. As a result, the key producers from the CIS are mostly not in the market to sell to Turkey and are concentrating on sales to Latin America and Asia. Smaller mills and traders are offering $590-600/mt CFR depending on the region. “I think only small deals are possible today and for lots for immediate shipment,” a trader told SteelOrbis.