Turkey-based integrated steel producer Kardemir has announced its new domestic billet sales, setting the price $25/mt above the previous level in deals closed in early November. Strengthening scrap prices and consequently rising rebar prices are the main factors supporting the uptrend in the billet segment as well. Moreover, the increased local billet prices, if accepted by Turkish buyers, may trigger an improved mood in the import segment as well.
Kardemir’s new billet price has been set at $585/mt ex-works for S235JR grade and at $590/mt ex-works for B420 grade. The producer’s previous sales were closed at $560-565/mt ex-works for a total of almost 35,000 mt. Later on, in the second half of November, other Turkish producers were trading 5,000-10,000 mt billet lots in the range of $550-560/mt ex-works Iskenderun. So far, Kardemir has traded 22,000 mt and closed its sales, sources say. “If true, it means that the price level is not widely accepted. But we still may see better demand,” a trader told SteelOrbis.
The level of offers in the import segment in Turkey is also expected to increase to around $530-535/mt CFR for small prompt cargo shipments from Russia and Donbass, while some sellers may target even higher levels. The previous deal levels were around $500-515/mt CFR earlier this month and market players expected offers to firm up to $520-525/mt CFR. However, buyers tend to wait and see in order to observe a clearer price picture in the billet segment, given the limited availability of billet from Russia and also persisting troubles in terms of shipments from some shallow-draft ports, SteelOrbis understands.