Turkey’s import billet market seems to be at some kind of a standstill this week, given the relative stabilization in the scrap segment, the May Day holiday and the increased offers from Asia. Some volumes had been booked earlier and not many customers in Turkey urgently need to restock billet, so negotiations are not plentiful.
Over the past week, Asian billet prices have increased by around $5-10/mt depending on the origin. In particular, ex-Malaysia billet is now available at $555/mt CFR Marmara, while Indonesian billet indications are at $545-550/mt CFR. Last week, both origins were on offer at $540-545/mt CFR. Offers from China have been reported at $548-553/mt CFR, versus $515-525/mt CFR seen in deals from Asia around three weeks ago. Currently, Turkish mills are reluctant to make large purchases from Asia and it may take them at least a week to resume restocking. “Buyers are chasing $530/mt CFR,” one trader told SteelOrbis. In addition to Asia, small lots of ex-Iran billet are offered to Turkey at around $510/mt delivered, marking the lowest price level in the market.
The SteelOrbis reference price for ex-Russia square billet to be shipped from the Black Sea has been stable at $500-505/mt FOB. Overall availability from Russia has been limited also due to the May Day holiday. Market sources said that the sellers will target $530/mt CFR Turkey from next week, translating to $505-510/mt FOB, while for the Egyptian market the targets are at $510/mt FOB and slightly above.
Nevertheless, the acceptance of higher prices is questionable. There has been a rumor about a 10,000 mt sale to Turkey at $520/mt CFR last week, translating to $500/mt FOB or a few dollars below. Though this information could not be confirmed by the time of publication, market sources agree that last week the tradable level was at $520-525/mt CFR. However, “the price [at $520-525/mt CFR] seems workable if it was done before Kardemir’s billet price announcement,” a Turkish billet importer said. “I think, after Kardemir, if it is not for prompt shipment, interest from buyers will be at $520/mt CFR maximum,” a trader said.
In the domestic market in Turkey, most suppliers have softened their offers to $560-570/mt ex-works, down by around $5-10/mt over the past week, following Kardemir’s aggressive prices seen at the end of April. Domestic billet availability is quite limited in Turkey, particularly in the Izmir region where offers have been reported at the upper end of the range. In the Iskenderun region, a small lot was sold last week at $575/mt ex-works, while the current offers are at $565-570/mt ex-works.
