Today, November 25, Turkey’s Kardemir has closed its local billet sales just a couple of hours after announcing a new higher price. Sources report the producer has succeeded in selling over 160,000 mt of billet due to the limited billet availability in the local market and advantageous payment terms. Kardemir had set its billet offer prices at TRY 3,960/mt ($495/mt) ex-works for S235JR grade, while its S420-B420 (formerly III-A) grade billet was available at TRY 3,995/mt ($499/mt) ex-works. Prices exclude 18 percent VAT.
The market has been expecting the Kardemir price for a while now and, in the meantime, the workable price levels in the market have been increasing. The latest deals in the Iskenderun region were closed at $500/mt ex-works, sources report, and the new offers have been set at $505/mt ex-works. “Kardemir’s price was announced at a high level and the fact that it was immediately accepted for such a large tonnage is a good sign for other sellers,” a local producer said. Other sources believe Kardemir’s sales will create some room for imports and that $490-495/mt CFR levels would be acceptable.
$1 = TRY 8.00