Following the rather decent market activity in the local rebar segment in Turkey seen over the past couple of weeks, buyers have naturally slowed down their activity, while prices are estimated at $555-585/mt ex-works depending on the region, while the upper end is not considered to be so workable. As a result, demand for local billet has also been quieter, while buyers at least do not seem to be ready to pay the previous high prices.
In this context, domestic billet prices have slid over the past week, with the price trend being confirmed by the new, lower-priced sales from Kardemir. In the import segment, buyers of billet have also been mainly hesitant, while the latest reported deals were closed from Russia at $458/mt and $466/mt CFR, depending on the shipment and volume, as SteelOrbis yesterday, December 16.
Turkish integrated steelmaker Kardemir announced new billet sales in its domestic market, dropping its price by $10/mt from the previous round of sales to $505/mt for S235JR and $515/mt ex-works for B420 grade. The price decrease is due to the slightly weaker local rebar market and competitive import billet prices, particularly from the Black Sea. As a result, Kardemir succeeded in selling over 55,000 mt of billet within a short time before closing its sales, SteelOrbis has learned.
In the other regions of Turkey, prices for billet have also softened, by around $5-10/mt depending on the supplier. In the Iskenderun region, the mills were offering at $520-525/mt ex-works before Kardemir announced its price, and currently their workable level is estimated at closer to $515-520/mt ex-works. In the Izmir region, billet prices are at $510-515/mt ex-works, while some suppliers might not reject $505/mt ex-works for an order for a decent volume, buyers believe. No firm price has been set in the Marmara region just yet, but market players estimate it at around $520/mt CPT.
Import offers from China have been reported at $470-475/mt CFR today, depending on the supplier, up $5/mt from the previous day. The cargoes are available for February shipments. According to sources, one Izmir region-based mill is looking for a 50,000 mt lot, aiming to pay not above $465/mt CFR, sources said. Indonesian billet offers are indicative at around $475/mt CFR, but for March shipments.
A Ukrainian mill is offering at around $500/mt CFR for February shipments, down $5/mt week on week. However, taking into account the slight weakening of the rebar market, the workable price levels for Ukrainian billet are evaluated as being closer to $485-490/mt CFR.