Favorable market fundamentals and the availability of square billet for nearer shipment dates compared to the CIS have supported Turkey in its export sales. In the meantime, while the import side remains somewhat silent, local deal prices have continued to rise.
According to sources, last week a Black Sea region-based steel producer sold 25,000 mt of billet to a trader for Latin America at $425/mt FOB. This week, the price situation is more positive. A producer from the Iskenderun region has closed a deal via a trader to Morocco at $433.5/mt FOB for January production. Another mill from the same area has concluded a deal with an international trader for 45,000 mt of billet for January production, while the cargo will most probably be destined for China since the market there has been booming. Most market players report the deal as being closed at $430/mt FOB, while some heard the transaction was at $433-434/mt FOB.
In the local market, 5,000 mt were traded in the Iskenderun region at $435/mt ex-works yesterday, up from $426/mt ex-works in deals closed a week ago. Another 20,000 mt has been rumoured in the market as being sold at slightly above $435/mt ex-works in the same region, but the information has not been confirmed by the time of publication. “The deal was rumored at $430/mt ex-works, but today I doubt that someone would sell below $435/mt ex-works. But, also, it might have been done for wire rod grade,” a trader told SteelOrbis.
In the import segment, business activity has been slow. The offers from the large CIS-based mills have exceeded $435/mt CFR by around $5-10/mt, while some mills prefer not to quote and to watch the market developments, instead. One seller has reported bids at $433/mt CFR Izmir for around 20,000 mt, while the workable level in the Iskenderun region has been estimated at $426-428/mt CFR. No sizeable deals, however, have been reported in the market this week.