The Turkish billet market has remained silent this week with few sales rumored, since availability from the Black Sea region has been scarce lately, while ex-Asia offers are currently not so workable for Turkish buyers. In addition, the scrap segment remains rather weak, making some billet customers hold back their purchases.
According to sources, there has been a 40,000 mt booking from Malaysia at $564/mt CFR, but the information has not been confirmed by the time of publication. Moreover, the sale has been denied by the supposed purchasers and the price is considered to be on the high side for such a volume. The indication for ex-Asia billet is still at around $560-565/mt CFR and maybe a little above, although a couple of traders have been heard fishing around with $545-555/mt CFR offers for both Malaysia and Indonesian offers. “The workable level for ex-Asia billet here in Turkey may be at around $550/mt CFR, but at this point the suppliers are not under much pressure to drop prices,” a trader has told SteelOrbis. Moreover, some sources have reported that a major producer is seeking to book a large volume at not above $530/mt CFR for non-Russian origin.
Ex-GCC billet prices are estimated at around $530-540/mt FOB and, with around $35-38/mt freight for a minimum of 30,000 mt, they would not be workable for the Turkish market.
The offers from the Black Sea region have remained indicative at $540-545/mt CFR and with the $535/mt CFR mark being achievable. However, there is not much movement seen in the market nowadays.
Ex-Russia billet reference price has remained at $510-517/mt FOB this week with minimal activity reported in the market. Some producers have been claiming offers at $520/mt FOB and assessing $515/mt FOB as a tradable level, but the buyers’ price ideas have been lower, bringing the market almost to a standstill. “The Russian Federations is not selling now. Only orders for old sales are being fulfilled. For example, we are going to ship billet under old contracts until the end of March,” a trading source said. “This week, everyone is waiting… But [the market moods] are going down in confident steps,” a Turkish trader said. Production at one of the mills in Donbass, the Ukrainian territory occupied by Russia, has been suspended for now.
The tradable level for ex-Russia billet in Egypt has remained at $550-555/mt CFR, while offers are rare and not below $560/mt CFR.
