Turkey’s billet buyers have as expected been interested in billet origins entailing fewer risks compared to Chinese billet, which is available for long lead times currently. As a result, Turkey is expected to favor ex-Black Sea billet and duty-free material from Asia.
According to market sources, two deals for ex-Malaysia billet for end-of-January shipments have been to Turkey’s Iskenderun region within the price range of $485-490/mt CFR. The total volume is around 70,000 mt, SteelOrbis has learned.
In addition, Turkish buyers are expected to pay some attention ex-Ukraine billet, which is now mainly available for February shipment, with a level slightly below $495/mt CFR expected to be workable.
Theoretically, ex-Russia billet is also foreseen to be in demand, with the latest offers at up to $460/mt CFR, but the allocation is limited, partly due to the unfavorable exchange rate.
Currently, Chinese billet is available in Turkey at $475-480/mt CFR for February shipment, up from $475/mt CFR at the end of last week. Sources believe that nothing above $465/mt CFR will work, while the number of negotiations is limited.
Local billet is also expected to be an option especially for the smaller buyers in Turkey. The prices for local billet are currently at $515-530/mt ex-works depending on the region, supported by high offer prices for rebar. Currently, workable prices in the Iskenderun and Izmir regions are at $565-568/mt ex-works, while the Marmara region-based mills were able to sell at $580-585/mt ex-works and are now aiming to reach $595-600/mt ex-works. Buyers are showing some resistance to such high levels for the time being.
