Trade in Turkey’s billet market is somewhat silent since the current working week is a short one due to the holiday. As a result, in the import segment, most buyers prefer to watch the market situation, especially since ex-China offers have inched up due to higher futures prices. Turkey’s local billet prices have slid over the week and resulted in some sales, but, overall, the market is expecting new offers from integrated producer Kardemir next week.
The latest billet prices in the Iskenderun region have settled at $500-505/mt ex-works depending on the seller, down from $508/mt ex-works in deals last week. Currently, buyers’ bids are mainly at $498-502/mt ex-works with no fresh transactions reported. In the Izmir region, according to sources, around 15,000 mt have been sold lately at $507-508/mt ex-works, down from $515/mt ex-works in the initial offers. Indications from the Marmara region have been reported at $495/mt ex-works or around $505-507/mt CFR Izmir, also down around $5/mt over the past week.
Import trade has been silent, particularly due to the price declines seen in the import scrap segment, weak rebar pricing, and the fact that some of the main buyers had restocked earlier. In fact, ex-China billet offers have inched up from $455-460/mt CFR last week to $458-462/mt CFR minimum, all for August shipments. Sources reported a 50,000 mt deal at $452/mt CFR Izmir, which is considered to be detailed information about the rumor of a $450/mt CFR sale to the same area heard last week. “Today, I am not sure that $455/mt CFR is easily possible since futures are up, but this uptrend is most probably short-lived. We will see after the holiday,” a trader told SteelOrbis. Some suppliers have reported bids from Turkish customers at $450-452/mt CFR, versus $460/mt CFR from China in offers.
Supply from Russia has been limited lately due to persisting problem with the unfavorable exchange rate. Though the US dollar-ruble rate has improved slightly for exporters to $1 = RUB 79 on June 2-4 from the previous low of $1 = RUB 77, it is still very bad for major sellers, who prefer to stay away from exports. The latest deals done to the Turkish Black Sea region-based buyers were reported at $450-455/mt CFR mainly last week, which translates to $430-435/mt FOB Black Sea. “Now there is zero supply. After the Eid, new offers may be lower,” a Turkish source said, adding that the general mood has not been negative, even despite some improvement in China seen today. The SteelOrbis reference price for ex-Russia billet has remained stable at $430-437/mt FOB for now, until new offers and deals emerge.