Ex-Turkey, ex-Ukraine and ex-Russia billet prices have increased against the background of the rises seen in overall scrap prices.
Last week, billet offers were standing at the level of $390-400/mt FOB Turkey, whereas the price levels have this week increased by $20-30/mt. Since scrap prices have maintained their uptrend, it is not expected that export offers for Turkish origin billet's current price levels of $420-430/mt FOB will show a decrease. Also, billet prices are at similar levels in the local Turkish market.
Meanwhile, the Russian and Ukrainian origin billet prices have continued to their upward trend. At the beginning of this week, the price levels have stood at the level of $360/mt FOB, while currently there are offers at $380-385/mt FOB Ukraine and at $390-400/mt FOB Russia. During this week, it is heard that some offers given from Ukraine to Turkish mills have this week been at the level of $400/mt CFR Turkey, as well as there are billet offers from Russia to Iran standing at a price level of $410/mt CFR Iran for Caspian Sea ports for January shipments.
With the possible scrap supply troubles due to worsening weather conditions, expectations regarding the scrap price decrease are weakening globally. Thus, if the scrap prices will go on with strong price levels, billet prices will likely go up.