The sudden decrease in import scrap prices in Turkey with the fresh booking from Belgium is expected to have a negative effect on billet prices in the country, including both local and import prices. Some market players expect price levels to fall by around $5-10/mt, while some think more sizable drops are possible.
Throughout the week, Turkey’s local billet prices in the Izmir and Iskenderun regions have been ranging within $370-380/mt ex-works, partly as not many mills have been in the market with offers. Karabuk region-based Kardemir was in the market with offers at the lower end of the mentioned range, with only minor sales fixed, SteelOrbis has learned.
Import offers have been coming at $360-370/mt CFR, up $10/mt over the past week, mainly for late June-July shipments. However, billet for closer shipment and at a lower price has been preferred, specifically in the Karabuk region. Around 25,000 mt have recently been sold to this area for May production at $353-355/mt CFR, SteelOrbis has learned.
Next week, lower prices are expected in the billet market in Turkey. “I think local mills will be back to $360-365/mt ex-works in reality, while imports may take some more time to react as key CIS-based producers seem not to be under much pressure for now. In any case, Turkey is not likely to buy big, that’s for sure,” a trader said.