It is observed that initial expectations of a revival in demand in the local Turkish finished steel market after the national Victory Day (Aug. 30) and the Feast of Sacrifice (Aug. 31-Sept. 4) holidays have failed to materialize during the past week. As a result, demand received from the buyers for billet has also failed to improve in the past seven days.
Despite the ongoing weakness of domestic billet demand, Turkish steel mills have increased their domestic billet offers by an average of $5/mt week on week to $525-540/mt ex-works. The upward movement of the domestic billet prices in Turkey has been supported by the ongoing rises recorded in import billet quotations as well as the expectations of a further decline in electrode supply which is predicted to increase the overall need for billet. Additionally, market sources report that a steelmaker in Turkey’s Iskenderun region has concluded a billet sale to its domestic market over the past week at $535/mt ex-works.
Ex-CIS billet offers to Turkey have increased by $5/mt on the lower end and by $10/mt on the upper end during the past week and are currently at $540-555/mt CFR. Meanwhile, Chinese billet export prices have continued their fluctuating trend and are today at $528-538/mt FOB. Chinese billet suppliers are still focusing on their domestic sales instead of maintaining a competitive price policy in their export markets.
Although, Turkish steel producers’ higher finished steel export prices have started to gain acceptance from buyers, Turkish mills are in no rush to conclude new import scrap transactions. On the other hand, since import scrap prices are still more attractive than billet offers, demand for both domestically produced and import billet has failed to improve during the past week and is still at low levels. Meanwhile, import billet demand received from Turkish rolling mills is not expected to revive until demand for Turkish finished steel in domestic and international markets accelerates.