The local billet trade has revived somewhat in Turkey with some deals closed mainly in the Iskenderun region as some buyers there preferred local origin material to imports. The high freight rates are considered the main reason for the low interest in import billet, especially from the large CIS-based mills, who have been insisting on rather high FOB price levels. Still, some small lots for prompt shipment were sold to Turkey at the end of last week by traders.
In the local market, an Iskenderun region-based supplier has recently sold a total of 30,000 mt at $660/mt ex-works. The market sentiment in the region is said to be rather positive, partly due to non-workable ex-CIS offers and also due to expected rebar sales to Asia, SteelOrbis understands. Generally, domestic billet prices in Turkey are mainly reported at $660-675/mt ex-works. In the Marmara region, the price is $670/mt CPT.
The import segment has been rather dull lately since the large CIS-based suppliers, who are aiming to sell at $650-660/mt FOB and above, do not find their prices workable in Turkey. According to sources, the freight rates for medium lots have increased to a minimum $30-38/mt depending on the region, making most ex-CIS offers significantly higher than local prices in Turkey. Still, some interest has been seen for small prompt-shipment cargoes. At the end of last week, a 3,000 mt billet cargo was sold at $665/mt CFR Bartin from Russia. However, the supplier may not be active considering the $115/mt duty on Russian material. “We wanted to see how the customers would act and, no surprise, they are trying to collect duty although the export clearance has been done by July, and so lots of traders may face problems now,” a supplier told SteelOrbis. According to sources, import bids in the country are scarce and are standing at $660-665/mt CFR in most cases.