Local Turkish billet prices decline slightly

Wednesday, 17 July 2019 15:51:11 (GMT+3)   |   Istanbul

Domestic billet prices in Turkey have fallen by $5/mt over the past week and are currently in the range of $430-445/mt ex-works. This decrease in the local Turkish billet market has been attributed to the weak domestic rebar and merchant bar demand in Turkey. Market players state that domestic billet prices in Turkey’s Iskenderun region are lower than the prices in Izmir, and so prices at $445/mt ex-works in Izmir do not attract the interest of buyers. Turkish billet buyers are still exerting pressure on prices due to their strong bargaining power.

Ex-CIS billet offers to Turkey are mostly at $440-445/mt CFR, but SteelOrbis has been informed that some traders are offering ex-Ukraine billet to Turkey in the range of $425-435/mt CFR for August shipment.

On the other hand, Turkish mills’ billet export offers have remained stable week on week at $430-435/mt FOB. Whereas overall demand in the Middle East and North Africa has been quiet, the Far East stands out among Turkish suppliers’ target billet export markets. Chinese buyers are heard to be in the market, aiming for new purchases after the sale concluded from the Gulf region to China last week. Additionally, SteelOrbis has been informed that Indonesian buyers are making price inquiries from the international producers and traders. Meanwhile, market sources report that billet offers are available from the Gulf region to Indonesia at $430-435/mt CFR.After the Egyptian administrative court denied the appeal of Egyptian steel mills regarding the recent cancellation of the import duty on billet, it is observed that Egyptian buyers have adopted a wait-and-see stance as regards new purchases. On the other hand, if Egyptian buyers disregard the duty on billet imports, they may show interest in Turkish billet offers at $450/mt CFR, which is in line with Turkish billet export offers on FOB basis at $430/mt, market sources report.

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