While import scrap prices have strengthened in Turkey, billet offers, particularly from China, have declined significantly since earlier this week. The suppliers of other origins of billet have also softened their price indications, but demand has remained silent. One reason is that the buyers are not under much pressure to book for end-of-November and December deliveries, at least in the short run. Another reason is that Turkish mills would like to evaluate the sustainability of the import scrap price uptrend and the opposite price development in the import billet segment. Still, smaller volumes from the Black Sea region, which can be also delivered with shorter lead times, may be in occasional demand, particularly from merchant bar producers in Turkey.
Currently, ex-China billet offers for end-October shipments are at $465/mt CFR as lowest, while $5/mt higher levels should be also voiced. Earlier this week, China mainly stood at $480/mt CFR Turkey. It is worth mentioning, that the most recent Chinese offers to Saudi Arabia have been reported at $465-467/mt CFR, while in Egypt the traders asses those around $490/mt CFR versus $505/mt CFR earlier this week.
The estimated price for Indonesian billet is at around $480-485/mt CFR, down $5/mt, although sources mainly admit that the supplier should not be under pressure due to earlier sales. An ex-Malaysia billet offer for 45,000 mt reported earlier this week as available at $495/mt CFR, is now heard to be offered at $485-490/mt CFR.
Demand for import ex-Asia billet is not yet seen in Turkey, although prices have more or less fallen their lowest levels, seen in deals for Chinese origin in the previous round of purchases for October and early November deliveries. In particular, according to sources, the latest ex-China cargoes were sold to Turkey a few weeks back at $463/mt CFR and $465-467/mt CFR depending on the tonnage.
Offer prices for ex-Russia billet have been reported at $485/mt CFR Turkey, while those from Donbass, the Ukrainian territory currently occupied by Russian troops, have been reported at $480/mt CFR Turkey. The levels are just slightly down from the $490/mt CFR level targeted last week, but most buyers assess the current offers as being on the high side. “If you give any firm bid, you may get a little cheaper,” a Turkish mill said. A few sellers of ex-Russia billet have said that they are not in a hurry to cut offers more, at least for now, as there is a lack of offers for small cargoes for shipment in late September and the first half of October.
The SteelOrbis reference price for ex-Russia billet has been corrected down slightly to $460/mt FOB, down by $5/mt on average from $460-470/mt FOB Black Sea last week.
