Competitive local prices restrain import billet trade in Turkey

Wednesday, 21 August 2019 16:18:55 (GMT+3)   |   Istanbul
       

Business activity in the billet import segment in Turkey has been slow amid competitive domestic pricing. In addition, low Turkish demand for merchant bars and also rebar have added to the pressure on CIS-based billet exporters.

In the Turkish domestic market, billet buyers in the Karabuk region have been active this week, having booked 94,500 mt from Kardemir at around $413-418/mt ex-works depending on the steel grade. In Iskenderun, offers have decreased by $5/mt week on week to $415-420/mt ex-works; last week a 10,000 mt transaction was closed at $415/mt ex-works, SteelOrbis has learned. “I think today $410/mt ex-works is easily achievable in any region of Turkey except Izmir,” a trading source commented.

Domestic billet pricing, being relatively competitive compared to ex-CIS offers, has been restrained import activity somewhat, resulting in low bids. Ex-CIS square billet has been mostly available at $415-420/mt CFR for September shipments, down by $5/mt week on week. Bids from steelmakers currently hardly exceed $400-405/mt CFR, SteelOrbis understands. “If I can buy locally at $410/mt ex-works for better delivery terms, when I can pay in Turkish lira and logistics are easier, then why would I pay the same or higher for an import delivery two months from now?” a local semis buyer said. However, some small lots have been traded this week at $410-415/mt CFR Izmir region, but for prompt shipments.


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