In Turkey, billet buying is still quite slow with buyers who need to restock seeking the least risky options or targeting the lowest possible prices for Asian and Russian billet. Some sporadic transactions have been reported this week at the previous price levels.
Currently, ex-China billet offers for October shipments are available at $480-485/mt CFR Turkey, up from $478-480/mt CFR seen last week. Considering the long lead time and the necessity to book in large lots, Turkish buyers are still not eager to pay above $460-465/mt CFR to China and so no fresh deals have been reported. Instead, information about at least 20,000 mt of ex-Malaysia billet being sold at $485-490/mt CFR has circulated in the market, but for September shipment. “It is not quite logical but not impossible if someone really needed billet for October [delivery],” a source told SteelOrbis. The information about the deal, however, has not been confirmed by the time of publication. The offers from Indonesia are still indicative since the material is available for November shipments and the price is evaluated at $485/mt CFR, being of no interest to Turkish buyers.
Ex-Russia billet prices have remained almost unchanged for another week. One deal for 30,000 mt of Russian material is rumoured to have been done at $463/mt CFR, which is in line with the previous contract done earlier in August at $460-463/mt CFR and translates to around $440-443/mt FOB. But the sale was denied by major market sources. “The price has been stable for a few weeks already. The Russians wanted $450/mt FOB, but obviously it will not work,” a source said. The SteelOrbis reference price stands at $437-442/mt FOB, stable from last week.
Local billet prices in Turkey have remained at $500-510/mt ex-works depending on the region, with not much activity seen considering the weak trade in the rebar segment. The workable prices are at $535-545/mt ex-works and only slightly higher in the Marmara region and so buyers’ price ideas are at $500/mt ex-works and lower for billet.
