Aggressive import prices for position cargoes offered to Turkey have been disturbing the market in the region, bringing workable levels down. As a result, some CIS-based suppliers who have been aiming to sell have been forced to drop their prices in deals to Turkey. In the meantime, business activity in the domestic billet market in Turkey has been at standstill.
The billet market in Turkey is still impacted by increased supply, given the numerous offers for position cargoes earlier destined to China and which are now being redirected to alternative outlets. The prices for these cargoes have fallen by at least $20/mt over the past week to $660-680/mt CFR, naturally putting pressure on ex-CIS and domestic pricing. No fresh deals have been confirmed for position cargoes. A rumor regarding a 30,000 mt deal for Qatari billet at $670/mt CFR Iskenderun has been denied by the buyer. However, the aggressive pricing for these cargoes has brought down workable billet prices in Turkey.
An ex-Ukraine 10,000 mt billet lot has been recently traded to Turkey at $660/mt CFR Marmara with the FOB level estimated by the market players at $628/mt. Another 30,000 mt cargo from Russia has also been rumored in the market as sold at the same $660/mt CFR level, but the information has not been confirmed by the time of publication. Some say the lot was traded from Ukraine, but for wire rod billet quality.
In the local market in Turkey, most suppliers have been in waiting mode this week, aiming to estimate the market developments in the scrap segment and also to evaluate the billet market prospects. Local offers in the Marmara region have dropped by $10/mt to $700-705/mt CPT, while sellers in the Izmir and the Iskenderun regions have been avoiding giving firm offers since the end of last week. The indicative offer level is these regions is estimated at $710-715/mt ex-works, SteelOrbis has learned.