CIS producers have this week been offering to the export market at the price level of $660-670/mt FOB. Although there is no interest from markets such as Italy and Turkey, it has been reported that some deals have been concluded to the Arabian Peninsula at the level of $670/mt FOB. In addition, it is reported that exports to the Far East and Southeastern Asia are in a good situation as regards price level. It is possible to find prices of trading firms which previously took position at $20-25/mt below the price level in question. However, the tonnages of these traders are considerably limited.
In the Turkish local billet market, the Iskenderun region announced a billet price level of $690/mt last week. It is heard that 80,000 tons of billet have been sold so far. The prices for Grade 60 billet are at above $680/mt ex-works in the overall Turkish regions. In spite of the billet tightening in the local market, rolling mills are not eager to buy the billet from both the local market and the CIS due to the fact that the Turkish local rebar market is sluggish. Also, the EAFs are not making concessions due to the strong tendencies in the international rebar and billet markets.
During the past week, Turkish producers increased their export offers to $700-710/mt FOB after they had concluded sales to the Persian Gulf, Middle East and Far East at the price range of $690-697/mt FOB.
The Black Sea and Mediterranean markets have been experiencing an upward movement since November. These markets may continue their upward trend in February as well, due to the fact that the Middle East market, which has been slow for a while, has gained momentum again. Additional factors are that the European longs market has been rising since early January and that there are some expectations that the Far East market will be strong after the Chinese New Year Holiday.