The general mood in the Turkish import billet market has been still bullish this week, though the activity has fallen to almost zero with the focus of traders switching from sales to end users to finding volumes to cover short positions.
Prices for ex-China billet have been heard at $485-490/mt CFR Turkey this week, increasing by $5/mt over the week. If buyers need higher manganese content material, the price would be above $490/mt CFR. Though in general there has been a lack of firm offers and this level has been indicative, market sources said.
Indonesian billet has been priced at similar levels with Chinese recently. But the major focus has been on traders trying to buy on FOB basis to cover short positions, not offering new cargoes for November shipment. Since late last week, the Indonesian mill has sold up to 150,000 mt of billets for traders at $440-450/mt FOB “mostly to Turkey and other non-Asia destinations to traders, covering their shorts,” a Singapore-based trader said. Some market sources said that traders are facing troubles in finding material at favorable FOB prices, especially considering that the previous Chinese deals were done at $465-470/mt CFR.
There have been also rumors that two Turkish mills have cancelled some old billet contracts, signed with Chinese traders, when prices were at above $500/mt CFR. However, this could not be confirmed by the time of publication.
Indications for ex-Malaysia billet in Turkey have increased from $495-500/mt CFR last week to $505/mt CFR.
The SteelOrbis reference price for ex-Russia billet has settled at $460-470/mt FOB Black Sea, moving up by $10/mt over the week as low-priced offers from some sellers have been disappearing from the market, following rises in Asian prices.
After a deal from the major Russian mill at $480/mt CFR Turkey and some small volumes of ex-Donbass billet at $465-470/mt CFR last week, market sources report that major exporters have withdrawn offers to Turkey. Most sellers were either voicing indicative offers at $490/mt CFR, translating to $465-470/mt FOB Black Sea, or planning to return with higher prices next week. “We are planning to work on loading material under old deals signed at $482-485/mt CFR by the middle of September. For the next shipments for late September-early October, we see the workable price level at $490/mt CFR. But Turks are not confirming this price yet,” a Russian billet seller said.
If the Turkish market remains slow in longer terms, some Russian suppliers will try to redirect sales to Egypt, according to market sources, where the base price has been assessed at $510/mt CFR at the moment.