Billet market players in Turkey have been trying to estimate the nearest outlook for workable prices, particularly in the import segment. The evaluations of the most recent deep sea scrap prices are somewhat uneven at the moment: some sources consider that the bottom has been passed, while others do not exclude another round of weakening after the elections, given the weakness of finished steel sales. Most mills in Turkey believe the current offers for import billet are on the high side in relation to scrap prices, but small re-rollers have just booked several cargoes from Russia and Donbass. In any case, for now no large-sized billet import bookings are expected to be done in Turkey.
The offers for ex-Russia and ex-Donbass billets have been very limited lately as the suppliers are taking their time before offering at higher levels. “While there are other lower offers, [large] Russian suppliers will stay away, but they will return by the end of the week with new prices I believe,” a source said. The import offers for ex-Russia billet for prompt shipments and for small cargoes have been at $560-565/mt CFR, versus sales at $570-578/mt CFR closed at the end of April. Fresh deals have been closed to the Karabuk region for a total of 11,000 mt at $558-559/mt CFR, while negotiations with other buyers continue. At the same time, ex-Donbass lots totalling around 9,000 mt have been sold at $550-552/mt CFR, again to the Karabuk region. The SteelOrbis reference price for ex-Russia billet has moved up to $520-535/mt FOB, from $525/mt FOB on average early this week. The increase has been based mainly on better sentiments on the back of the temporary halt to the downtrend of scrap prices.
Billet of other origins are also represented in the Turkish market. According to sources, Malaysia is offering at $555-565/mt CFR levels, while small truckload cargoes from Azerbaijan and Georgia are on offer at $550/mt CPT, mainly to the Iskenderun and Karabuk regions. “This is a good price from Georgia as there is no duty,” a trader said. Ex-Iran billet has remained at $530/mt CPT, SteelOrbis has learned.
While the import billet segment in Turkey is stalled, there has been a certain movement in the domestic market. According to sources, the latest deal has been closed for 10,000 mt in the Iskenderun region at $605/mt ex-works, up from the previous deals at up to $590/mt ex-works. In the Marmara region, the billet price was at $610/mt CPT, which was considered high by buyers.
