Demand in the local Turkish
billet market is still characterized by weakness, while locally produced
billet prices have softened by $10/mt week on week to $350-370/mt ex-works. The volume of price inquiries for locally produced
billet is at very low levels, while Turkish steel producers have restarted their import
billet purchases after a long absence. According to market sources, it has been heard today, June 15, that three different Turkish mills have concluded ex-China deals for a total of 100,000 mt of
billet in the range of $303-305/mt CFR, for July shipment.
Although Turkish steelmakers' finished steel sales have improved slightly during the past week, they have failed to meet Turkish mills' expectations. Meanwhile, with Turkish steel producers starting to purchase low-priced import
billet, scrap quotations are expected to come under pressure in the coming period. Turkish steelmakers' priority is to increase their finished steel sales. As a result, they are expected to step up their downward pressure on import scrap and
billet quotations in the short term, while their
billet purchases are expected to be shaped by their finished steel sales.
Additionally, import
billet offers to
Turkey have continued their downward movement over the past week. Ex-CIS
billet offers to
Turkey have declined by $10/mt week on week to $320-330/mt CFR, while in the same period Chinese
billet offers to the same destination have fallen by $5/mt to $305-315/mt CFR. Moreover, suppliers in both China and the CIS region are eager to conclude
billet sales to
Turkey and so they are inclined to accept Turkish steel mills' requests for discounts.