Billet pricing and trading in Turkey is supported by the firmer import scrap prices in the most recent deals, and the consequent rise of domestic rebar prices, up by at least $5-10/mt over the past week and even higher in some regions. Contrary to this positivity, China has returned from its holiday with a slight decrease in offers, but buyers from Turkey have this time opted for ex-Malaysia billet.
Chinese offers have decreased by around $5/mt over the past week to $465-470/mt CFR in most offers for November shipment, while some of the traders are offering at $472/mt CFR. Import indications from Indonesia have been reported at around $475/mt CFR with no negotiations reported this week. In the meantime, according to sources, two cargoes have been booked from Malaysia at slightly below $485/mt CFR Iskenderun for end-of-November and early December shipments. Moreover, sources report there are offers for an additional 18,000 mt of Malaysian billet to Turkey. Ukraine has started offering for December shipments at $500/mt CFR, up from the latest workable level of $485/mt CFR.
The SteelOrbis reference price for ex-Russia billet has settled at $435-440/mt FOB Black Sea this week, up by $5/mt from late last week, due to the improved mood among sellers following scrap price increases. Offers for Russian material are as high as $465/mt CFR Turkish Black Sea. “This price seems unworkable for Turkey as China is at $470/mt CFR officially and can easily agree on $465/mt CFR,” an Asian trader selling to Turkey said. But there are not many customers in Turkey ready to purchase a large lot of Chinese billet, which are usually up to 50,000 mt. “It [Russian billet offer price] seems not so high, considering that buyers will bargain. Scrap is going up… so, especially in the north of Turkey, buying from the Russian Federation [in smaller lots] could be the only option now,” a Turkish trader said. The tradable level for ex-Donbass billet is still assessed at not above $450-455/mt CFR.
Ex-Iran offers have been reported at $445-450/mt CPT Turkey, specifically to the Iskenderun region, which is considered a workable level for small lots and for prompt shipments.
In the domestic market in Turkey, billet offers are at $500-510/mt ex-works with even $515/mt ex-works reported in the Iskenderun region, where rebar prices have increased this week to the highest level across Turkey.
