Since import scrap prices have been maintained at high levels in Turkey for quite a while now and at the same time rebar sales have been slow for exports and moderate in the domestic market, interest in high-priced import billet has remained low. Most of the offers coming from Asia are for November deliveries at best, making ex-Black Sea material or captive production more attractive, in addition to sourcing billet locally for those needing to restock.
Domestically, integrated producer Kardemir has opened fresh billet sales at $500/mt and $510/mt ex-works depending on the steel grade and has managed to sell around 35,000 mt. The supplier’s price has stabilized since late July, proving the market to be sustainable overall. In the Iskenderun region, the targets have slid back to $510/mt ex-works, down from $513/mt ex-works achieved earlier in deals. “[Some] are putting pressure on rebar prices with lower levels around $540/mt. Thus, mills are hesitating to buy billets,” a market source told SteelOrbis. In the Izmir region, the offer level has reportedly remained at $500-505/mt ex-works and at around $505-510/mt ex-works in the Marmara region.
Import offers from China have been mainly reported at $485/mt CFR for end-of-September shipments, down from $485-490/mt CFR seen last week. No takers are to be found even though buyers believe levels of $478-480/mt CFR are achievable. “The issue is still the same - far too long delivery terms while captive production or local billet is more acceptable for many,” a trader said. Ex-Malaysia 150 mm is reported to be priced at $495/mt CFR although some of the sources mentioned indications as high as $505/mt CFR. The latest price from Indonesia stood at $455/mt FOB, which is around $490/mt CFR Turkey. Ex-Ukraine billet is on offer at $490/mt CFR from one of the mills, stable over the past week and the cargo is available for September shipment.
The SteelOrbis reference price for ex-Russia billet has changed minimally since last week and stands at $440-442/mt FOB Black Sea, up by just $1/mt on average over the week, but the market is assessed as stable by most market sources. Most offers from Russia have been coming to Turkey at $465 -470 /mt CFR, while bids have remained at $455-460/mt CFR. “The tradable level is still in between - at around $462-463/mt CFR, in line with previous deals,” a Turkish source said.
There have been rumors about material from Donbass, the Ukrainian territory occupied by Russia, available at $455/mt CFR in Turkey, but this has been widely rejected by most market participants. “The Donbass business is complicated now. DMZ is having some problems with money and their bank accounts; they cannot ship their cargoes and are asking for extra payment before shipment. So, they are not able to sell a new cargo,” a market source commented to SteelOrbis.
There has also been talk about a trader selling at $450/mt FOB, but most market sources agree that this could be only for the Egyptian market, where a level of $480/mt CFR may be workable, but it is only for wire rod grade billet, that may have $8-10/mt extras. Some official offers for end-of-October shipment base billet from Russian sellers have also been heard at $450/mt FOB, but no deals have been done at this level.
