Turkey’s integrated steel producer Kardemir has announced new billet prices for the domestic market, decreasing them by $10-15/mt from the levels back in mid-December. With the situation in the billet market in Turkey being uncertain, especially in the import segment, the pressure on offers from abroad has increased. In the meantime, Kardemir has managed to sell significant volumes mainly to the regular Karabuk region-based buyers. Its sales are now closed.
Today, January 8, Kardemir has announced billet prices for S235JR and B420 steel grades at $490/mt and $510/mt ex-works, respectively, with a discount of one percent granted for cash payments. As expected, the producer traded large volumes, around 60,000 mt, to its regular buyers. “These are the buyers who purchase either from Kardemir or from Russia/Donbass and cannot buy large volumes from Asia obviously. The Kardemir price is acceptable according to recent rebar and merchant bar offer levels,” a source told SteelOrbis. Other billet suppliers in the local Turkish market are evaluated at $510-515/mt ex-works.
Ex-Asia billet prices have not changed much since earlier this week except for China which is now offering a more or less firm level of $465/mt CFR, while previously only evaluations of below $470/mt CFR were reported. Indonesia is still offering at $470/mt CFR, while one of the Malaysian suppliers is offering at $480/mt CFR, with buyers’ price ideas being $5-10/mt lower at least.
The decline in the local billet market in Turkey has impacted the price ideas in the import segment. Market sources have confirmed that the last deal for ex-Russia billet for January shipment was done just before the holidays at $460/mt CFR, translating to $440/mt FOB. Sellers were targeting $465-470/mt CFR, hoping to get this after the holidays. But “these sales [by Kardemir] will lower import prices by $10/mt,” a trader said. One of the exporters said that exporters have not returned fully after the New Year and Christmas holidays, so targets at $440/mt FOB may still be seen in the market for some time, though they will hardly be workable. The SteelOrbis reference price for ex-Russia billet has been corrected down by $5-10/mt today, January 8, to $435/mt FOB Black Sea.