Domestic and import billet prices in the Turkish market have increased in the past week, with support from the ongoing uptrend of scrap prices since last week. As a result of increasing scrap prices in the Turkish market, where demand for billet is still at medium levels, buyers’ inquiries for billet have increased. Accordingly, in the past week domestic billet prices in Turkey have increased by $33/mt on the lower end and risen by $30/mt on the upper end to $380-400/mt ex-works. Meanwhile, in their domestic market Turkish steel producers prefer to focus on finished steel sales rather than billet sales since domestic finished steel prices have been rising significantly, and this situation has caused some tightening of domestic billet supplies in Turkey.
Meanwhile, ex-CIS billet price offers to Turkey have risen by $20/mt on the lower end and by $25/mt on the upper end week on week to the range of $360-370/mt CFR. While Turkish buyers are making firm bids at $355/mt CFR, CIS-based buyers do not want to conclude sales at this price level.
On the other hand, Chinese billet offers to Turkey have increased by $20/mt on the lower end and risen by $15/mt on the upper end to $350-355/mt CFR week on week. Turkish buyers are making firm bids at $340/mt CFR, but this price level has failed to gain acceptance from Chinese sellers.
Turkish steelmakers, having gained relief in terms of scrap inventories as a result of recent bookings, are expected to conclude new bookings of raw materials in the coming days and to choose either billet or scrap depending on which one will provide a better cost advantage.