CIS and Turkish mills raise billet export offers anticipating better demand in September

In the past week, Turkish mills' steel billet export offers have seen some upward adjustment, in line with increased long steel demand and long steel price hikes. Thus, Turkish producers' steel billet export offers are now standing at $695-705/mt FOB on actual weight basis, increasing by $10/mt as compared to last week.
 
In this week's Turkish domestic steel billet market, with its new price list dated August 24, 2011, Turkish steel producer Kardemir opened its sales for S235JR grade (St37) billets of 130 mm x 130 mm x 6-12 m size at the level of $688/mt ex-works, excluding VAT, and also opened its sales for MT III-A grade billets of the same size at the level of $693/mt ex-works, excluding VAT. Compared to the previous price list, the new billet prices increased slightly by $3/mt. However, within a few hours, the producer closed its billet sales, after selling approximately 38,500 mt. In the Turkish domestic market, local steel billet prices have now settled at $688-700/mt ex-works on actual weight basis.
 
On the other hand, the CIS steel producers have also updated their steel billet export offers upwards this week, though not as much as Turkish mills. Ex-CIS steel billet export offers are thus at $680-685/mt FOB, for September shipments. However, due to Ramadan and the summer holidays in Europe, buyers are still quiet.
 
Although the Middle Eastern and Mediterranean markets are currently very calm, if current steel billet price levels are maintained along with narrow supplies of Turkish and CIS producers, or if demand rebounds in September as expected and the situation in the global economy improves, it is though that steel billet prices may see another upward correction in the coming period.