The import offer price range for billet in Turkey has narrowed down by the end of the week, particularly the most aggressive levels previously available for ex-Russia material seem to be off the table now. In fact, some suppliers have either increased their offer indications or have preferred to stay firm at high levels, citing the currently limited market allocation.
According to sources, the latest offers for medium and small billet lots from Donbass and some Russian mills have been reported at $570-575/mt CFR minimum, up $10/mt compared to the earlier disclosed 10,000 mt sale. A large Russian mill seems to be still insisting on $590-595/mt CFR, though some sources report the supplier had sold a good tonnage previously at $580-585/mt CFR (for March shipments). In addition, a Russian supplier for prompt shipment cargoes has adjusted it new price to $605/mt CFR, up from the earlier closed $590-597/mt CFR transactions.
The SteelOrbis reference price for ex-Russia billet has increased slightly to $550-560/mt FOB, up by $10/mt on average from $530-560/mt FOB reported earlier in the week. This happened mainly owing to the lower freight rates, while also very low prices reported from some Russian suppliers have not been seen in the market anymore. According to market sources, the larger lots of up to 20,000 mt can have freight rates to Turkey at $20/mt or just a few dollars less, while the freight from Russia for smaller lots of around 5,000 mt is at $26-28/mt now. Previously, the average freight rates from the Black Sea were at $30-38/mt depending on the volumes. “It is unclear what is happening in scrap. Asia left for the holiday in a positive mood, so we need more signals,” a source said.
Domestic billet pricing has slid in Turkey this week, mainly due to lower interest from buyers after quite active restocking, but also due to lower import scrap deal price levels. As a result, integrated producer Kardemir traded up to 20,000 mt at $635-640/mt ex-works this week and closed its sales. In the Izmir region, buyers are counting on $630/mt ex-works from the local producers, while earlier the offer level stood at $650/mt ex-works. In the Iskenderun region, which had been showing the highest sales activity and rapidly increasing prices, a deal was closed earlier this week with a $15/mt price drop to $640/mt ex-works. Moreover, the most recent transaction has already been reported at $620-625/mt ex-works Iskenderun for around 6,000 mt.