Turkish integrated steel producer Kardemir has opened its billet sales in the domestic market for the first time since April 5. Despite the drop of $20/mt in its prices, this has been not enough to push the very big volumes in the market which had been expected by the mill, as overall sentiments have remained bearish and more declines in scrap and billet prices are awaited.
On April 27, Kardemir has announced its billet price at $610/mt for S235JR and $615/mt for B420 grade, both on ex-works basis, down from $630-635/mt ex-works early in the month. These prices have been evaluated by market sources as still high in the current bearish conditions. Out of the total sales volume of 100,000 mt planned by the producer, according the market the final quantity sold totaled 45,000 mt.
In the other regions in the local Turkish market, there has been almost no movement. Market sources are expecting billet prices at around $600/mt ex-works in the Iskenderun region, down from last week’s $640-650/mt ex-works. However, mills in the region would hardly be interested in active sales at such prices, which will only prolong the market silence.
Since Kardemir’s prices are for deferred payment, for ordinary payment buyers may target far below $600/mt ex-works in the local market, $570-580/mt ex-works, according to sources. This will put additional pressure on import billet prices, which settled at $565-580/mt CFR earlier this week for different origins. “I think that the global market will remain negative after the May holidays too. We need to see new lower scrap deals,” a trader said. Turkish buyers’ price ideas for import billet would hardly be above $550/mt CFR in the next round of bookings.