Following the fall recorded in import scrap quotations in Turkey in the most recent deals concluded in the current week, Turkish mills’ domestic billet offers have decreased by an average of $7.5/mt week on week to $455-460/mt ex-works.
Market sources state that demand in the local Turkish billet market has weakened with buyers adopting a cautious stand since they are worried due to the uncertainties surrounding the results of the March 31 local elections and the fluctuating trend of the Turkish lira-US dollar exchange rate.
Meanwhile, in the most recent ex-US scrap deal concluded in Turkey, 32,000 mt of HMS I/II 80:20 scrap has been bought at $306/mt CFR, and so buyers have started to postpone their demand due to their expectations of a fall in billet prices resulting from the decline recorded in import scrap quotations.
There are expectations that domestic billet prices in Turkey will decline to $450-455/mt ex-works. On the other hand, Turkish steel producer Kardemir opened its domestic billet sales as per its new price list dated yesterday, April 9, for 150 mm x 150 mm S235JR grade billets at the level of TRY 2,610/mt ($462/mt) ex-works, excluding VAT, and has also opened its sales for MT III-A grade billets at TRY 2,640/mt ($467/mt) ex-works, excluding VAT. SteelOrbis has been informed that Kardemir has so far sold approximately 28,000 mt of billet.
Additionally, there are various ex-CIS billet offers in the Turkish market. While CIS-based producers’ offers are at high levels, there are also various offers from the CIS-based trading companies for spot shipments. While a billet sale from the CIS region to Turkey has been heard at $445/mt CFR, there are also offers at $436/mt FOB. Meanwhile, Turkish mills’ price ideas for ex-CIS billet are in the range of $435-440/mt CFR.
It is observed that rebar export prices of Turkish producers, who had long been seeking to keep them stable, have moved down to $485-495/mt FOB in parallel with the downtrend of scrap quotations.
$1 = TRY 5.65 (Apr. 9)