The sharp drop in import steel scrap prices in Turkey has dragged down ex-CIS billet export offers. Importers’ bids have decreased by $10/mt to $380-385/mt CFR Turkey over the week. Small lots have been booked this week at $385-390/mt CFR depending on the region, but for prompt shipments. Market players expect buyers’ price idea for October shipments to be below $380/mt CFR, especially if import scrap prices continue to weaken. Current ex-CIS billet prices in the region are assessed at no higher than $370-375/mt FOB.
Turkey’s domestic billet offers are mainly ranging within $400-410/mt ex-works depending on the region, $5-10/mt below last week’s levels. Bids in Iskenderun are at $390-395/mt ex-works, but sellers are resisting, stating their scrap stock cost is high. “If mills go this way, they will stop production. If they want to be in the game, they have to sell [billet] and buy replacement,” a trader told SteelOrbis. As a result, market players believe that some more sizeable import billet cargoes might be booked to Turkey shortly if buyers’ and sellers’ expectations match.
On exports, Turkish mills remain inactive as there is almost zero chance to compete with the CIS. Sporadic offers are heard at $395-405/mt FOB (-$5/mt over the week), making them $25-30/mt higher than the ex-CIS tags.