The first week of January has been rather slow in terms of business activity in the billet market in Turkey. In the import segment, hardly any offers have been heard, but the estimated price levels have been lower than the ones seen last week due to lower scrap prices and negative sentiment in the CIS export market. Next week, however, some buyers are expected to return to the market with price inquiries.
In the local market in Turkey, most producers prefer to stay away from giving firm offers and concentrate on shipping orders sold earlier at higher prices. This week, only one deal for 10,000 mt has been reported as sold from Iskenderun to the Izmir region at $550/mt ex-works. Most market players consider $550-565/mt ex-works as reasonable levels for this week for billet. However, some say anything above $550/mt ex-works will not work, taking into account the rebar market situation. “Next week maybe Kardemir gives a price or scrap may stabilize it seems. And people will return to the market,” a source told SteelOrbis.
In the import segment, hardly any offers have been heard in the market. Ex-CIS billet prices have decreased by $10/mt over the past week to $530-540/mt FOB, which makes around $545-555/mt CFR Turkey. More offers within the range are expected to be seen next week, sources expect, but a lot will depend on the situation in the local billet and import scrap markets. It is also worth mentioning that Turkish re-rollers rather than steel producers are expected to be in the market for import billet.