Trading activity in Turkey’s import billet market has remained dull with only a few sales rumored to have been done. In general, bids are still reported at rather low levels, which are not acceptable to some sellers, particularly those from Russia and Donbass. Some, however, seem to have preferred to sell.
According to sources, 3,000 mt of billet have been sold recently at $530/mt CFR to the Karabuk region in Turkey, while the main bids last week stood at $520-530/mt CFR for small cargoes for prompt shipment.
The SteelOrbis reference price for ex-Russia billet has declined to $505-515/mt FOB Black Sea from $515-520/mt FOB, as bids and rare trades have been reported at reduced levels. “There is no market at the moment. The Turks are partly on holiday already. It is not excluded that, if someone [from Russia] needs to sell urgently, the price of $530/mt CFR Turkey will be fair,” a trader said. Some of the Russian sellers, however, are still aiming to sell at $560/mt CFR minimum this week for immediate shipments.
In addition, there has been talk in the market about a sale of a ready cargo of 30,000 mt of billet from Bahrain at around $540/mt CFR, in line with the offers last week. However, the reported buyer has denied the purchase although although many believe it has in fact been concluded. Others, in the meantime, have commented that it would have been more logical to wait on sizeable purchases for now, given the upcoming holiday and the awaited decision by the Central bank. “I don’t believe there will be a [purchasing] move until the end of the holiday, unless someone wants to play with the currency. With no confidence in rebar, a 30,000 mt [billet] booking is still risky, despite the prompt shipment,” a trader said. As a result, this cargo may still be available for sale to Turkey.