Turkish billet producers have remained active in exports, trying to compensate for still rather weak rebar sales. In addition, the number of inquiries has increased.
Billet sellers from Turkey are mainly in the market with initial offer prices of $360-365/mt FOB, down $10/mt over the past week; however, the level is negotiable. In particular, according to market sources, a 10,000 mt cargo was closed at $358/mt FOB Iskenderun; some have mentioned two more deals - one at $360/mt FOB and another one at $355/mt FOB. “Such levels are competitive and Turkey is offering closer shipment than the CIS, and therefore can sell some,” a mill said. Producers note that the number of inquiries has increased, which can be interpreted as a feeling among buyers that the market is close to the bottom.
Import offers are mainly reported at $375-380/mt CFR for October shipments, with the latest bookings closed at $367-370/mt CFR for limited lots. Overall, according to the sources, Turkey has booked around 50,000 mt since the first half of September, with the buyers being mostly rolling mills.
In the domestic market, most offers are at $375-380/mt ex-works, which is in line with last week’s levels. Some buyers say $370/mt ex-works might be also possible. Players are hopeful for some rebound in the market as import scrap prices have stabilized somewhat for now. In addition, it is said that there is limited availability of billet from Turkish mills, which can provide a certain degree of support for prices.