Turkish producers had increased their domestic
billet offers last week by $10/mt on the lower end compared to price levels recorded on November 9 to $410-415/mt ex-works, with buyers accepting the higher prices against the backdrop of the ongoing increases in import scrap and
billet quotations.
Although new import scrap offers for
Turkey are higher than the price levels recorded in the latest scrap deals, Turkish buyers have maintained a cautious stance and have preferred not to concluded scrap purchases at higher price levels due to the sharp declines recorded in the Chinese steel market. With the Turkish lira once again losing significant strength against the US dollar today, November 16, and given the declines recorded in Chinese
billet offers, apprehensions in the Turkish market have increased, causing domestic demand for
billet to decline slightly. In these circumstances, the upward movement of Turkish producers'
billet prices has come to a halt in the current week.
Last week, ex-CIS and Chinese
billet offers to
Turkey continued their upward trend. However, ex-CIS
billet quotations, which had reached $400-410/mt CFR - up $20/mt in the second half of last week compared to November 9 against the backdrop of the rises seen in Chinese
billet offers towards the end of last week - have moved sideways in the current week. It is heard that Turkish steel producers have concluded new ex-CIS
billet deals at $400-410/mt CFR.
On the other hand, Chinese
billet prices, which had risen to $405-415/mt FOB towards the end of last week, have declined significantly in the current week amid the sharp declines recorded in the Chinese futures market and due to the weakness of steel demand. Chinese
billet quotations have fallen by $30/mt to $375-385/mt FOB, regressing to the previous levels seen on November 9.