In view of higher domestic rebar prices in Turkey and a decent trading activity, and also higher import scrap prices in recent deals, the Turkish integrated steelmaker Kardemir has opened its regular local billet sales with a price increase. The supplier’s offers are aligned with market expectations and the prices of other billet producers in Turkey. Moreover, the mill has managed to close its sales after selling significant volumes.
Turkey’s Kardemir has opened new 150 mm x 150 mm billet sales at $515/mt ex-works for S235JR grade and at $525/mt ex-works for B420 grade, up by $10-15/mt from the deals done in early November. The producer has managed to sell 50,600 mt of billet within a short time, reflecting relatively healthy market conditions.
Other billet producers in Turkey are offering at $510-520/mt ex-works with most activity seen previously in the Iskenderun region. The latest deals were reported at $514-519/mt ex-works for considerable volumes. In the meantime, Turkey’s local rebar offer prices have settled for now at $565-590/mt ex-works, up around $10-15/mt since mid-November depending on the region. However, the workable level is assessed slightly lower than that and restocking activity is moderate for now. “Despite weak rebar exports, strong scrap and billet prices are supporting local buyers [of rebar] to continue purchases even though stocks are now at acceptable levels,” a trader told SteelOrbis.
As reported earlier this week, import offers for billet from Russia and Donbass are still at $455-460/mt CFR, which means that the gap between the lowest import price in Turkey and local billet offers has widened. Chinese billet is offering at $465-470/mt CFR, while Ukraine is in the market with around $490-495/mt CFR.