Sluggish demand in local Turkish billet market

Wednesday, 30 November 2016 18:01:08 (GMT+3)   |   Istanbul
       

Demand in the local Turkish billet market is currently sluggish, while buyers are postponing their billet purchases amid the uncertain prospects for the market given the declines seen in import scrap prices and due to the instability of import billet quotations. On the other hand, domestic billet prices in Turkey have gained support from the rises recorded in ex-CIS billet quotations and from import scrap offers which are still higher than Turkish steel producers' expectations. Accordingly, Turkish steel mills have kept their domestic billet offers stable over the past week at $392-415/mt ex-works. Also, Kardemir is still continuing its domestic billet sales which were opened on November 21 at $392/mt ex-works.
 
During the past week, Chinese billet export quotations have fluctuated against the backdrop of the volatility of the Chinese steel futures market. Chinese billet export prices, which were at $380-385/mt FOB on November 23, increased up to $415-420/mt FOB on November 28 and then started to decline yesterday (Nov. 29) and are currently at $405-410/mt FOB. Turkish buyers have preferred not to conclude deals for Chinese billet for a long time now and under the current circumstances they are not expected to in the short term.
 
Today, November 30, market sources state that ex-CIS billet offers to Turkey are in the range of $400-415/mt CFR. As demand for finished steel in the local Turkish market is currently sluggish, Turkish buyers consider ex-CIS billet offers to be on the high side and so demand for ex-CIS billet in Turkey is still at low levels.

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