Turkish mills have continued to show a rather modest interest in import billet even though prices are still quite workable for a few origins. Turkish buyers are cautious regarding the prospects for longs demand both locally and abroad due to the political unrest in Turkey and the poor demand incoming from overseas destinations. In the meantime, some suppliers are trying to raise prices while there is some resistance from Turkish buyers.
According to sources, at the end of last week Turkey booked up to 100,000 mt of ex-China billet at a price of around $475/mt CFR or slightly lower. As SteelOrbis reported at the time, one of the international traders was offering at $476/mt CFR. Currently, ex-China prices are at $480-483/mt CFR and above, with no new deals reported. Indonesian billet has been on offer at $485/mt CFR minimum, based on a $455/mt FOB indicated price. Malaysian suppliers, according to buyers, are not in the market now, being sold out for May shipments and thinking it is a bit early to start selling for June. In addition, a Vietnamese mill is offering billet at $486/mt CFR for end of May shipments, and up to $490/mt CFR according to some buyers. However, such a level is currently not considered to be an acceptable one.
The SteelOrbis daily reference price for ex-Russia billet has increased from $450/mt FOB to $455-460/mt FOB for May shipment. Some of the official offers from mills are at $470/mt FOB Black Sea, although buyers’ price ideas generally do not exceed $460/mt FOB. “For Russia, only the short lead time might play as an advantage. The prices are workable but the same levels from Asia are problematic due to the lead time. What one buys from Russia can be used in May, while for Asia it is the end of June most probably,” a trader told SteelOrbis. In Turkey, market players reported a deal for a decent volume at $470-475/mt CFR from Russia, while the most recent offers from Russia and Donbass are evaluated at $470-480/mt CFR and above, for May shipments.