Mediterranean billet market back in control of traditional players

Turkish and CIS origin billets indicate a flat movement since early August with the slight rally in Chinese prices. CIS origin billets were offered in a price range of $390-400/mt FOB Black Sea in the 33rd week of the year. Some sales even at $390-395/mt FOB Black Sea are heard to have been concluded to Turkey and certain Middle East countries. The strong movement of CIS domestic market throughout summer was one of the reasons of the price decreases, despite the Chinese pressure. The withdrawal of Chinese billet offers from Mediterranean ports and also offers to the Gulf region at acceptable levels contributed to the CIS billet to hold on to $390-400/mt FOB levels. Although there are some offers below $390/mt FOB in the market, big suppliers are not making offers below $390/mt FOB Black Sea, for the time being. Turkish origin billet faces a $30-35 price difference in the domestic market since Turkish mill Isdemir refuses price reduction. Isdemir sold its 3-month production at $460/mt at the beginning of the summer and is not willing to decrease prices for the time being, although there are price differences of $30-35 per mt in other regions of Turkey. Those who can buy import billets from the rolling mills in Iskenderun, Turkey are trying to evaluate CIS billet offers at $415-420/mt CFR Iskenderun. It is heard that a meltshop in another region concluded a sale of two prompt shipment cargoes of billets to Iskenderun. Turkish billet export offers are generally at $410-420/mt FOB Turkish ports. As per unconfirmed reports, a few producers even made offers below $410/mt FOB, in order to compete in export market. Turkish billet is expected to remain to $410/mt levels with the slight increase in scrap prices. Also the decent level of Gulf region purchasing activity and the expectation that the Europe will revive slightly after the holiday period may allow billet price to hold to these levels. In addition to that the lower effect of Chinese billet in Mediterranean and Gulf may at least help prices to follow a flat movement. Mediterranean billet market is again being controlled by the former players due to the slight rise of Chinese billet prices as well as a light decrease in Turkish and CIS origin billet prices. We can say that Chinese billet is not really sold in Mediterranean, but has a psychological impact on Turkish and CIS billets. Customers started to wait since the beginning of last month with the psychological impact of lower-offered Chinese billets. Thus, both CIS and Turkish billet prices indicated decline. Another country made a name in the billet market was India during July. Offers to the UAE are currently at $410/mt CFR. The attraction of Indian billet started to lessen due to the low-quality billet and the decrease in CIS and Turkish billet prices.