No significant change has been seen in the Turkish billet market over the past week. Ex-CIS billet availability is still limited and April shipment volumes are almost sold out, and so the main suppliers are reluctant to give the lower prices on which Turkish buyers insist. In the meantime, market players are concerned regarding the increasing tensions in the Russia-Ukraine crisis and its possible effect on the steel trade.
This week, import offers for ex-CIS billet have remained rare and the indicative level is estimated at $695-715/mt CFR depending on the supplier, tonnage and the lead time. “Rebar in Turkey is sold at around $730-735/mt [ex-works/ex-warehouse] on average, so it means either a buyer will aim to pay $685-690/mt for billet or the buyer is not a rebar producer but a wire rod or merchant bar producer,” a trader told SteelOrbis. In the meantime, a 30,000 mt ex-India billet cargo was sold by a trader to Turkey’s Izmir region at $715/mt CFR. Some sources believe the batch has not been bought for rebar rolling.
In the local market in Turkey, the latest deals in the Iskenderun region were closed at $703-705/mt ex-works for 13,000 mt in total. The current offers are at $705-710/mt ex-works. The same level is on offer in the Marmara region, but on CPT basis. As for exports, Turkish origin billet is offered to Egypt at $740/mt CFR by traders, SteelOrbis has learned.
Billet market players are trying to understand the current Russia-Ukraine situation and its possible impact, especially after the recent escalation, following Russia’s decision to recognize the independence of the so-called DNR and LNR in defiance of US and European demands, and of Ukraine’s solid position on the matter. The West has already started announcing sanctions against Russia, so far mainly on certain officials and several banks, which seem not to have had a major effect on the steel trade yet. In Ukraine, the producers say there have been no disruptions in their shipments and the local situation is being closely watched. In terms of the international trade, some billet market players have reported that banks and financial institutions are being cautious at present, which may result in certain delays in the issuing of letters of credit.