CIS producers have been offering billets for export at $1,080-1,100/mt FOB Black Sea for late July shipments. Some of the CIS producers have filled their order books for July shipments and they think that it is too early to talk about August shipments. Meanwhile, trading firms with previously taken positions are offering at lower levels for early July shipments compared to the abovementioned prices.
The EAFs in the local Turkish market have been offering at the price range of $1,130-1,160/mt ex-works, excluding VAT. The EAF prices had been stable for a couple of weeks, since Kardemir and Isdemir had opened billet sales at $1,060-1,080/mt ex-works, excluding VAT, which range was below expectations, and they had also concluded deals at these levels. However, expectations are rising strongly in this billet market due to the fact that the Persian Gulf region in particular is maintaining rebar purchases at high price levels and also since the general demand level is still strong.
As regards Turkish billet imports, in the last two weeks sales were concluded by trading firms with previously taken positions. In the last week in particular, there were deals of ex-CIS billets at the price range of $1,130-1,050/mt CFR. This week, the rolling mills have hardly responded at all to offers in the range of $1,100-1,120/mt CFR for July shipment.
The Turkish and CIS billet markets have this week maintained their strong movement. Demand is still especially strong in the Middle East and Gulf regions. On the other hand, due to the long product price increases across Europe and the fact that the €/US$ exchange rate has again reached 1.58, the overall European market may again gain some momentum. However, the high price levels have attracted some alternative players to the market as mentioned in our previous analyses. It is heard that the big Indian producers have been making offers at the price level of $980/mt FOB. Meanwhile, a deal from India to Turkey on container basis was concluded in the past week at the price level of $1,050/mt CFR.