Billet market sentiment and prices seem to be improving in Turkey, although many players still believe that the optimism in scrap and rebar will be short-lived and that the billet uptrend is mainly related to higher costs and the scarcity of import offers.
Today, October 6, local integrated producer Kardemir announced billet prices at $628-633/mt ex-works depending on the steel grade. The offer is in line with the majority of expectations earlier seen in the market. “It is a reasonable price and it makes sense if mills sell rebar at $700/mt ex-works and above,” a trader told SteelOrbis. By the end of the day, Kardemir has closed its sales and, according to sources, managed to sell up to 30,000 mt, although the final tonnage has not been confirmed by the time of publication.
In the import segment, another 3,000 mt Russian lot has just been sold at $597/mt CFR Izmir region, following the $590/mt CFR deal to the same area closed by the same supplier. Russian billet offer prices are still mainly estimated at $580-595/mt CFR though the number of suppliers remains limited. Billlets of alternative origins, i.e., South Korea and Indonesia, are still on offer at $560-575/mt CFR, as reported yesterday.
