Turkish billet market has been waking up after the long holiday and seeking for a clear market price. Locally Kardemir has finally announced the billet sales, thus providing the CIS billet sellers with additional information regarding what to offer in terms of imports. Most offers heard in the market, although their number is still scarce, have been set at the pre-holiday levels. However, despite some optimism in China, the downturn in import scrap prices in Turkey might result in lower deal level for billets.
In the local market of Turkey integrated Kardemir has finally opened the long-awaited billet sales, having set the prices at $677-682/mt ex-works depending on the steel grade. “The price they announced is correct according to the current market conditions and finally it is in USD,” a trader told SteelOrbis. The buyers have also found the offer reasonable and booked close to 85,000 mt of billet within just a few hours, SteelOrbis has learned.
In other regions of Turkey the prices are slightly lower. A Marmara region-based mill has reportedly sold around 10,000 mt at $675/mt ex-works, while in Izmir the local offers have been reported at $670/mt ex-works. In the meantime, no active negotiations have been heard in the Iskenderun region, but it is believed that $660-670/mt ex-works might be achievable.
Import billet offers in Turkey continue varying depending on the seller, the tonnage and the shipment terms. In addition, a lot of suppliers have been waiting for a clearer picture regarding Kardemir offers. Small lots with short lead times are on offer at $665-670/mt CFR north, similar to the latest deals closed before the holiday to Bartin area. Offers to Izmir and Iskederun are reported at $10-15/mt levels with no interest seen just yet. It is worth mentioning, that some sources have been reporting the deals closed to Bartin for 20,000 mt and to Aliaga for 10,000 mt at $650-655/mt CFR within the past 10 days. However, some market players doubt those levels could have been possible. “I think no one has such position cargoes for a while now,” a trader said.
Since China has restarted importing billet, some of the Turkish mills have decided to try their chances as well. According to sources, one of them has offered $725/mt CFR which is netting back to around $670/mt FOB Marmara. “Normally for sure it would be close to $650/mt FOB since the freights are crazy, but they [the mill] have the rebar cargo to be shipped to Asia at around same time,” a trader told SteelOrbis.