Since rebar production and trade have been weakening significantly in Turkey, the situation has had an expected negative effect on the billet business as well. Prices in Turkey’s billet market have decreased over the past week, with rare buyers being cautious as regards purchases, seeking the lowest offer possible if there is some requirement.
Integrated producer Kardemir decreased its billet price by $22/mt week on week to $340-345/mt ex-works depending on the grade. According to sources, the company has sold around 60,500 mt of billet by now. In the Izmir region, some offers were coming from a Marmara region-based supplier at $350/mt CPT with no deal closed, SteelOrbis understands. In Iskenderun, the billet sellers are seeking to get bids, while the potential offer level is estimated at $340-345/mt ex-works at the highest.
In the import segment, business activity is restricted as buyers are being cautious and seeking to book only limited volumes with the shortest lead time and at the lowest levels. This week, around 15,000 mt of billet have been sold at $333-335/mt CFR Karabuk and Izmir regions, SteelOrbis has learned. Offers from first-tier suppliers are at around $345-350/mt CFR on average, with no interest seen.
Turkey’s export offers have not been solid this week as mills prefer to deal from customer to customer. While most indications are still close to $350/mt FOB, both mills and producers agree that $340-345/mt FOB is possible to get. Saudi Arabia is one of the options to sell to as one of the re-rollers there has recently placed an order for 50,000 mt of billet, though it is seeking to book below $360/mt CFR, SteelOrbis has learned.