Billet trade in Turkey has been paused after the most recent deep sea scrap sale reported in Turkey. As the scrap prices have decreased significantly, players prefer to watch for further market developments.
This week, offers from key CIS-based mills have been reported at $420-425/mt CFR for end-of-February shipments, down $5/mt over the past week. In the meantime, traders have been offering at $410-415/mt CFR, trying to clear their positions. “The market is weakening, so it is better to sell now. There is still margin for these position cargoes,” a source said. Some deals for prompt shipments have been closed at $412-414/mt CFR, SteelOrbis has learned. One 5,000 mt cargo, according to sources, was sold to Marmara region at $406/mt CFR, though some players assume it was the billet originating from the east of Ukraine. By the end of the week, import bids for billet have become rare and the level has generally not exceeded $410/mt CFR.
In the local Turkish market, Kardemir sold close to 40,000 mt of billet at $425/mt ex-works for deferred payment. Otherwise, domestic business activity has been slow with offers mainly set at $425-430/mt ex-works, in Iskenderun specifically. As regards exports, some deals have been reported to Morocco at $423-425/mt FOB, though this information has not been confirmed by the time of publication. Billet was also offered to Saudi Arabia at $445-447/mt CFR or around $425/mt FOB, but the level was not accepted by the customer.