The first week of the year in Turkey’s billet market has resulted in sizeable sales by local producer Kardemir after three weeks of absence, while in the other regions billet market activity is limited by slow rebar sales. However, in the import segment, information about sales from Asia and Ukraine has been reported.
Turkish integrated producer Kardemir opened the first week of the year with local billet sales with a $5/mt discount from December prices - at $500/mt for S235JR and $505/mt for B420, both on ex-works basis. The producer managed to close sales to its regular buyers totaling almost 50,000 mt.
Billet offers in other regions of Turkey, as well as the demand for these offers, are under pressure from the slow activity in rebar sales, particularly in the Izmir and Iskenderun regions. Despite the rather firm trend in the import scrap segment, the workable rebar prices have remained at the pre-holiday levels of $555-575/mt ex-works. As a result, billet offers are mainly at $505-510/mt ex-works, mainly in the Iskenderun region, and for February deliveries.
Import offers from China are now largely indicative for end-of-February and March shipments, standing at $480/mt CFR, in line with the middle of last week. According to sources, at the end of December one of the mills in the Izmir region booked a 50,000 mt lot at $475/mt CFR from China for December shipment. “This buyer is a regular one and the price is workable though some bids would normally be below $470/mt CFR,” a source told SteelOrbis.
In addition, a 10,000 mt deal from Ukraine was reported at about $490/mt CFR at around the same period of time, with no current offers being on the table.
Indonesian offers are indicative at $450/mt FOB, translating to $485-487/mt CFR minimum and for April shipments. Offers for billet from Malaysia have been reported at $500-505/mt CFR Iskenderun region, assumed to be for March shipments.
No fresh and firm billet offers from Russia have been reported in the market due to the ongoing holiday period. The end-of-December indications stood at $460/mt CFR and some Turkish buyers expect the Russian suppliers to return from next week with prices $5/mt higher.