Turkish billet buyers have shown significant interest in billet from Kardemir even though the supplier increased its prices by $10/mt, despite the still rather quiet trading activity in the longs segment. The main reasons for this are the escalating fears regarding the availability and shippability of ex-Russia and ex-Donbass billet cargoes due to the recent issues regarding ports and shipping operations in Russia's Black Sea and the almost complete blockage of supplies from Azov Sea ports, according to market reports. Specifically, the logistics issues persist due to war-related risks in the area, which make shipowners and crews unwilling to work with Russian ports, while insurance rates as well as freight rates have been rising significantly. “The Russian option is not regular anymore. The problem is not only the ports: basically there are few mills left and all are bleeding. Getting the financing is difficult and they cannot run the show alone, with no local support either,” a trader told SteelOrbis.
As a result, many Turkish buyers have booked from Kardemir at $525/mt ex-works for S235JR material and at $530/mt ex-works for B420 grade, with a total tonnage of 100,000 mt. In the Iskenderun region, billet prices are at $535-540/mt ex-works, up $5/mt over the past week, while in the Izmir region some suppliers are offering at $550-555/mt ex-works. The rebar market situation has remained unsatisfactory amid low demand and prices rolling back to $570-585/mt ex-works, depending on the mill.
Logically, no firm offers for billet from Russia have been reported lately, with the latest small transactions closed at up to $495/mt CFR for short lead times. Despite the increase of around $5/mt, the SteelOrbis daily reference price for ex-Russia billet has remained stable at $465-470/mt FOB due to the increase in freight rates to a minimum of $30/mt. Ex-Iran offers are also hardly heard, with only a few reports in the market of indications of about $470-480/mt DAP for the Karabuk region.
There have been reports about a $510-515/mt CFR billet sale from Malaysia to the Iskenderun region, after initial offers at $520/mt CFR, but the information has not been confirmed by the time of publication. Ex-China billet is priced today at $510-512/mt and up to $515/mt CFR, with some interest expected to be seen at levels not above $490-495/mt CFR, which is hardly suitable for suppliers. Ex-India billet for September shipments has resurfaced in the Turkish market at $500-505/mt CFR, with no deals concluded yet, sources told SteelOrbis.
