Domestic billet prices in Turkey have increased further by $5/mt during the past week and are currently at $445-455/mt ex-works. Market sources state that new deals in the local Turkish billet market have been concluded in this price range, while price inquiries are made continuously.
Chinese billet export quotations have increased by an average of $12.5/mt over the past week to $465-470/mt FOB. The rises seen in raw material and finished steel prices in China are pushing up global steel quotations and supporting the upward movement of both domestic billet prices in Turkey and ex-CIS billet prices.
Ex-CIS billet quotations have increased by $10/mt week on week to $435-440/mt CFR amid the rises seen in Chinese billet export prices and also due to the increases seen in import scrap prices in Turkey. As Turkish steel producers have concluded many import scrap transactions, they are currently not showing much interest in ex-CIS billet offers. On the other hand, Turkish rolling mills - which are known to conclude occasional purchases of ex-CIS billet - mostly prefer to work with local billet suppliers due to more attractive delivery times.
As a result of the long-standing lack of lively demand for ex-CIS billet in Turkey, CIS-based billet suppliers are focusing on the strong demand they are receiving from Egypt, giving many offers to the Northern African country. Additionally, the strong demand for ex-CIS billet in Egypt makes it easy for CIS-based billet suppliers to increase their export prices. Accordingly, billet suppliers in the CIS region are expected to increase their billet export offers further in the coming period.