There have been no major changes in prices in Turkey’s import and local billet segments this week since, even though some international sellers have been targeting price levels $5/mt higher, workable levels for buyers have remained almost unchanged or have even declined, following the recent fall in rebar prices.
Generally, the bearish sentiment that emerged last week in the market has persisted and has even deepened after this week’s decrease in local rebar prices by $5-8/mt to workable levels of $590-610/mt ex-works. In such conditions, most market sources have been inactive in terms of billet purchases.
The mood in Turkey has been in contrast to some better sentiment in Asia. Today, April 16, offers from a major Chinese trader have added $5/mt to $520/mt CFR, amid higher costs, rising futures and the lower production in China seen in March. But even a small increase will hardly work out in Turkey at present, with the last deal for Chinese material being rumored at $515/mt CFR. Though it has remained unconfirmed by the time of publication, market sources see this as the highest possible price level for now, while the previous booking of the same origin was done at $514/mt CFR, indicating a stabilization of the market.
Ex-Malaysia billets have been offered to Turkey at $535-540/mt CFR, the same as last week, but now buyers are even targeting duty-free materials at not above $520/mt CFR.
Trading has also been silent for other billet origins like Russia. A few major mills and traders have been asking for $510-515/mt CFR, which is $5-7/mt higher than the prices reported in early April. But while there were a few deals done for small volumes at $505-510/mt CFR around ten days ago, a Turkish importer noted, “There is silence now. If someone needs billets urgently, they may pay $490-505/mt CFR.”. The worsening mood has been confirmed by sellers as well. “We need $510/mt CFR to cover the current high costs, but this is impossible. So, it is better not to offer,” a trader said.
The SteelOrbis reference price for ex-Russia billet has settled at $465-475/mt FOB, with the midpoint at $470/mt FOB, moving down by $5/mt from last week’s high.
