Turkish mills aim to accelerate billet exports while China is active

Tuesday, 27 April 2021 17:57:53 (GMT+3)   |   Istanbul

Turkish mills remain active in billet exports trying to get as much advantage of the positive situation in China as possible. More Turkish mills are aiming to sell abroad nowadays, while in the local market business has mainly been stalled due to slow rebar and the recent announcement regarding the lockdowns. In the import segment, bids from some customers have picked up this week, but the level is still not so workable for the large CIS-based mills.

According to sources, a Turkish mill, based in the northern part of the country, has recently sold 40,000 mt for export at $604/mt FOB. The destination is unknown, although most players believe it is for China and hence the large volume. Mills from the Iskenderun region have reportedly been targeting export sales as well with offers at $610-615/mt FOB. The freight is estimated at around $45-55/mt, SteelOrbis understands.

In the local market in Turkey, a producer from the Iskenderun region has succeeded in selling a small lot at slightly below $600/mt ex-works, versus $590/mt ex-works in the previous round of deals. In the Izmir region, offers from the local mills have been scarce within $610-625/mt ex-works, depending on the supplier. Some offers from induction furnace-based producers are reported at $595/mt ex-works.  In the meantime, in the Marmara region one of the producers is targeting $605/mt ex-works, SteelOrbis has learned. Kardemir has still not announced the new billet price for the local market, making both buyers and sellers in the Black Sea region wait.

Starting from the end of last week, bids from some buyers in the Izmir area have increased to $600/mt CFR, taking into account the tight local supply and the fact that local merchant bar producers may be able to afford to pay this price for imports. However, this level is still too low for the CIS mills, who have been selling to China and Latin America at around $600/mt FOB. Billet offers to Turkey still generally vary within $595-620/mt CFR.

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