Black Sea billet prices, which fell to $490-495/mt FOB Black Sea in late April, have increased slightly since bookings were concluded to North Africa, Europe and the Middle East at these levels. CIS producers have started to give offers in May at levels of $505/mt FOB Black Sea and above. There were offers up to $515-520/mt FOB Black Sea last week and at the beginning of this week. However, this week CIS producers have started to feel anxious about the negative trend of rebar. Furthermore, the competitive offers of Turkish producers may create a pressure on CIS producers. Despite everything, CIS producers have kept their prices at the same level this week and concluded sales at $505-510/mt FOB Black Sea to the Middle East.
In this week's Turkish domestic market, Turkish mill Isdemir lowered the local price of billets to $545/mt + VAT. However, no interest has shown in this level due to the low longs prices in the market. Furthermore, other regions made offers at $535/mt CFR to Turkey's southern region Iskenderun. Both political uncertainty and the negative trend of the rebar market are causing a lack of demand in import and local billet purchases. Currently, Turkish billet export offers are at $515-520/mt FOB Turkish ports. Although customers are pushing for lower prices, Turkish producers are maintaining their prices at the same level since they are making offers at the level of the CIS producers.
Billet prices, which rose slightly in early May, now seem to have stabilized. Most market players had expected that prices would be strong through May. However, billet customers are trying to put pressure on Turkish and CIS billet prices due to the negative trend in the rebar market. No significant change has been recorded yet. Currently, most market players are finding it difficult to make a forecast about the next move of the billet market.