The positive mood has been strengthening in the Turkish billet market, however, mainly in terms of domestic and export sales rather than the import segment. Turkish mills have been able to increase prices in fresh deals closed this week for significant tonnages. Moreover, a lot of them are targeting the Chinese market due to higher margins even compared to local sales. In the import segment, prices have increased too, though the deals have remained sporadic and for small volumes.
According to sources, an Iskenderun region-based producer has recently traded a total of around 35,000 mt of billet locally at $615/mt ex-works, versus $600/mt ex-works in the previous deals. New offers have been voiced at $625/mt ex-works, while the latest deal, for 15,000 mt, has already been closed at this level. In the Karabuk region, Kardemir sold over 90,000 mt of billet earlier this week at $598-603/mt ex-works. Moreover, another producer in the region has traded billet at $597-598/mt ex-works at around the same time, sources report. In the meantime, the number of offers in the Izmir region is very low and the expectation for next week is $620/mt ex-works minimum.
China’s demand, coupled with the recent abolition of the import tax for billet of non-Asian origin, has spurred Turkey’s interest in exports. According to sources, another 50,000 mt batch has been sold this week at $617/mt FOB Iskenderun region, versus $604-610/mt FOB seen in last week’s sales. “It is a good opportunity to sell a large lot in one shot with a good margin, however, not all mills are ready for that since, due to the increasing market, it might be better to sell in smaller batches to the local market. Also, not everyone can allocate several 50,000 mt lots,” a trader told SteelOrbis.
In the import segment in the Turkish market, the large CIS-based suppliers seem to be paying minimal attention to negotiations, aiming to sell to China, again with much better prices. Meanwhile, in Turkey 2,000-3,000 mt lots have been sold this week at $610/mt CFR northern part of the country, up by around $15/mt since mid-April. “There are no offers below $620/mt FOB from the CIS now,” a source said, while some mills have already voiced a target price level of $630/mt FOB. The SteelOrbis reference price for ex-CIS billet is $610-620/mt FOB, which corresponds to around $670-680/mt CFR China for cargoes not more than 50,000 mt. Most sources believe that the uptrend will continue after the early May holidays as not many mills are ready to provide big tonnages now.