Turkish integrated steel producer Kardemir has opened new billet sales in the domestic market at a significant discount from last week’s market level. The mill has followed the generally negative sentiment in the billet market in Turkey which results from lower scrap price expectations and slow long steel demand.
On April 5, Kardemir has set its billet price at $630/mt for S235JR and $635/mt for B420 grade, both on ex-works basis. Although offer levels are around $20-25/mt lower than the general local market offers last week, the supplier managed to sell only a limited tonnage, at least for now. According to sources, sales have reached around 15,000 mt and are still open.
Market players generally believe that other suppliers will have to follow Kardemir’s example, although some may choose to halt offers. In the Iskenderun region, the market price is expected to be at $640-650/mt ex-works, while in the Izmir region the indicative offer level is estimated at $645-660/mt ex-works depending on the supplier.
The situation in the import segment has remained unchanged from the previous day. While buyers’ interest is almost nonexistent, offers from Russia and Donbass are at $580-610/mt CFR and the indications from Asia are at $605-615/mt CFR.
