The negative market trend seen in the Chinese market has had an almost immediate effect on the billet segment in Turkey and the CIS, bringing down prices quite sharply. As a result, local prices in Turkey have lost $30/mt over the past week, while import offers have dropped by $35-45/mt over the same period.
The mood in the import segment has been pessimistic this week, following the decrease in ex-CIS prices by $45/mt over the past week to $655/mt FOB on average. As a result, traders’ position cargoes have been offered this week at $680-695/mt CFR and lots of 3,000-5,000 mt have been sold at $670-680/mt CFR to most regions in Turkey. “Even this may not be the end and prices may fall by another $10-20/mt at least. This may push scrap down also, while the rebar trade is not so supportive,” a source told SteelOrbis.
In the domestic market in Turkey, buyers have been waiting for Kardemir to announce its new sales and have been postponing negotiations with other sellers, not being certain of the price levels. Suppliers, in their turn, have not been eager to voice solid offers since there has not been any solid demand. On May 27, Kardemir has announced billet prices at $692-697/mt ex-works depending on the steel grade and, according to sources, has managed to sell around 22,000 mt.