Import scrap prices in Turkey have remained stable since the beginning of the current week, while import billet prices have increased in the same period. As a result, domestic billet quotations in Turkey have moved up by $20/mt week on week to $415-430/mt ex-works. Additionally, supply in the local Turkish rebar market still remains tight and the resulting price rises seen in the domestic rebar market have supported the upward movement of domestic billet quotations.
Following the previous rebound in iron ore prices in China, iron ore quotations once again started to fall on May 3 and continued their downward movement until May 9, causing Chinese billet export prices to decline to $395-405/mt FOB in this period. However, with iron ore prices increasing on May 9, Chinese suppliers have increased their export billet quotations to levels of $400-410/mt FOB, which are approximately $5/mt lower than the price levels recorded on May 3. Demand for Chinese billet in Turkey had already been at low levels for a long time and, according to reports, Turkish buyers still show no interest in Chinese suppliers' billet offers.
Meanwhile, ex-CIS billet offers to Turkey have increased by $15/mt week on week to $410-425/mt CFR. Demand for ex-CIS billet in Turkey has revived slightly during the past week amid the sharp rises seen in domestic billet quotations as well as due to the tight billet supply caused by steel producers' decision to focus on rebar sales rather than on billet sales. Market sources also report that Turkish buyers have concluded ex-CIS billet deals at $410/mt CFR for June deliveries.