Local billet prices have posted increases in Turkey this week with Kardemir opening sales and some other mills managing to sell small volumes at better levels. Overseas billet suppliers are also bullish, but there have been no reports of new deals so far.
Kardemir’s new billet price has been set at $627/mt ex-works for S235JR grade and at $632/mt ex-works for B420 grade. The producer’s previous sales were closed at $600-605/mt ex-works on Tuesday, December 20. Even though the price is considered by market sources to be on the higher side, there are reports that around 30,000 mt of billet have been traded, and, while the final confirmed tonnage is expected to be clarified soon, the billet sales are still open.
In the Iskenderun region, offers have been at $640/mt ex-works since last week, and one small deal for 3,000-5,000 mt of billet has been heard to a merchant bar producer at $638/mt ex-works. The prices have posted a significant increase as last week the general range of local billet prices in Turkey stood at $605-620/mt ex-works.
In the import segment, the lowest offers for ex-Russia billet from a few traders have been at $565/mt CFR, while large producers are still out of the market and are expected to ask for $575-580/mt CFR at least. Some suppliers are expecting to start negotiations even at closer to $600/mt CFR, for prompt shipment. A number of mills from the MENA region have been ready to offer at just $550-560/mt FOB at the lowest, which translates to $575-585/mt CFR minimum to Turkey.
The SteelOrbis reference price for import billet in Turkey has increased to $565-575/mt CFR, versus $550-565/mt CFR last week.