In the local Turkish billet market, a producer has this week (32nd week of 2008) announced its price level at $975/mt ex-works, excluding VAT. While the already-descending local market prices were last week at around $1,200/mt ex-works excluding VAT, the price level this week has fallen to $1,020-1,100/mt ex-works, excluding VAT. Considering the time period for a deal concluded today which extends from the start of production to final delivery, the local rebar and merchant bar rolling mills in Turkey have been experiencing difficulties in anticipating the billet price levels due to the price decreases in finished products such as rebars and merchant bars. As a result, the rolling mills have even been abstaining from the abovementioned price levels. Meanwhile, the Turkish producers have not determined any definite export price level; however, market players mention that Turkish billet export price levels are in a range of $1,010-1,050/mt FOB.
SteelOrbis has been informed that the CIS producers' billet offers for the export market are at $940-960/mt FOB for September. However, there is not much interest in these offers due to the current price downtrend.