According to market sources, transaction activity in the local Turkish
billet market has been quiet lately, while the most commonly reported prices are currently in the range of $450-460/mt ex-works. However, buyers are reportedly finding these levels on the high side especially due to slackness of demand in the local finished steel market and are seeking price levels at $430/mt ex-works. With buyers and dealers failing to find common ground on prices, activity in the market has remained slack and demand has been negligible. Meanwhile, Turkish steel producers are buying import scrap on the high side at $320-321/mt CFR, and so market sources believe that the stable trend in the local
billet market will end in the coming days.
On the other hand, the CIS markets are still on holiday and players are expected to return to the market by next week. Hence, there has not been any new
billet offers from the CIS to
Turkey.
Billet suppliers in the CIS region, where power shortages continue to be seen, are expected to determine their new price levels by considering the increases in scrap prices and the Chinese government's decision to remove the export tax rebate for boron-added steel products.