Turkish billet producers are facing challenges in their daily sales especially in the domestic market, considering that the workable rebar prices have been sliding to $535-550/mt ex-works and that, overall, a wait-and-see stance currently prevails in regard to billet restocking. Bids are slightly lower than the mills’ offers, but the suppliers are trying to avoid discounts, considering high production costs amid unchanged import scrap prices. Some successful attempts are seen in the export billet trade with interest mainly seen in North Africa, but most export destinations prefer dealing with cheaper (and riskier) suppliers from Asia and Russia. Import billet trade has also been slack, as SteelOrbis has reported, mainly as buyers are trying to avoid long delivery risks and are dealing for billet with close proximity.
Export offers for Turkish billet are now mainly at $505-510/mt FOB, with a couple of suppliers active, considering the production cost estimated at around $500/mt with the scrap price being unchanged at $340-347/mt CFR for HMS I/II (80:20). The offered price level is considered high for most of the potential sales destinations but some buyers still prefer to book from Turkey in smaller lots compared to the lots from Asia. According to sources, a medium-sized billet deal for September shipment was closed to Morocco at above $505/mt FOB, which is in line with a similar sale last month but for 35,000 mt. However, offers to Tunisia at $507-508/mt FOB were not accepted for 10,000 mt and the buyer is more likely to deal for Russian billet, offered at around $490/mt CFR. A similar situation is seen in the Egyptian market where Russian billet from ports has been sold at $495/mt CFR, while the evaluated price from Turkey stands at $520-525/mt CFR minimum.
Turkish billet sales to Latin America are also under pressure. According to sources, there have been inquiries for large volumes from the Dominican Republic with an order partially closed by volumes from Brazil (40,000 mt). ASEAN sellers, usually targeting this market, have failed to sell this time, as even the ex-Indonesia base billet price is at $445/mt FOB for November shipment, while the level targeted by other ASEAN exporters, which have closer shipment dates and can offer the requested billet with higher managanese content, was at $460/mt FOB and above. Since it is believed that the buyer is aiming to book at no less than $500-510/mt CFR effective, even Asian billet sellers do not quite meet expectations. Ex-Turkey offers in the meantime are estimated at no less than $540-550/mt CFR for October shipments, which is certainly not workable for Latin American buyers.
Turkey’s domestic billet prices have softened slightly from mills’ targets last week, taking into account the sliding workable price levels for rebar and the overall wait-and-see mood among buyers. In the Iskenderun region, producers are mainly looking to book at $505-510/mt ex-works, down from $508-515/mt ex-works seen earlier. According to sources, bids are hardly above $500/mt ex-works. In the Izmir area, the sellers are offering at $500-505/mt ex-works, down $5/mt over the week with limited demand seen within the mentioned price range. The Marmara region-based offers for billet have been reported at $500-505/mt ex-works, but at around $507-508/mt CFR to Izmir.
Import offers for billet in Turkey, as SteelOrbis reported earlier, have softened slightly on the Chinese side from $485/mt CFR to $478-480/mt CFR for October shipments with bids being rare and at around $460-465/mt CFR. Similar price ideas are being voiced by Turkish customers in response to $465-470/mt CFR offers from Russia and the occupied territories of Donbass since the suppliers intend to remain firm at $450/mt FOB. Ukraine has recently sold a medium-sized lot to Turkey at slightly below $490/mt CFR, while its allocation for the coming period is expected to be limited.