The billet market in Turkey is currently more oriented towards the local segment since buyers prefer to evaluate the potential risks of dealing for cargoes from Asia. Local producer Kardemir has announced a reasonable billet price according to the current $555-575/mt ex-works rebar levels, and so has managed to sell large volumes over a short period. Billet cargoes from the Black Sea/Azov Sea are also expected to be negotiated by Turkish buyers in the coming days since they are less risky that Asian cargoes. Still, despite the uptrend in the rebar segment in Turkey’s local market, demand is lagging behind and the restocking is seen only at reduced volumes.
Integrated mill Kardemir opened new 150 mm billet sales today, March 11, at $505/mt ex-works for S235JR grade and $510/mt ex-works for B420 grade, up $15/mt from the previous sales in the second half of February. The supplier managed to close trading quickly after selling over 70,000 mt. “The price is quite reasonable and in today’s global market conditions the buyer chooses to have a reliable supply of billet, at least as part of one’s requirement,” a source told SteelOrbis.
Aside from Kardemir, the general level of local billet prices in Turkey stands at $505-515/mt ex-works and up to $520/mt ex-works in some cases. Such levels, coupled with the uncertainty regarding long-distance supplies from Asia, are expected to allow Russian suppliers to trade small lots to Turkey. The offer levels are mainly at $470-475/mt CFR, while some have started reporting $480/mt CFR as well, which is not considered workable at the moment.
Currently, the ex-China billet price for May shipments is at $495-505/mt CFR, down $5/mt down from the evaluations yesterday. Ex-Malaysia prices have been reported at $510/mt CFR, relatively stable from earlier this week. The latest prices from Ukraine stood at $525/mt CFR for April shipment.
