Export offers of
CIS origin billets early this week almost remained unchanged over last week. Offers circulating in the market were ranging between $400-405/mt FOB Black Sea. Producers and exporters were aiming to increase offers to $410-415/mt. They partly achieved their purposes through the mid-week and $410/mt FOB levels were heard in the market. Italian rolling mills showed interest to
CIS origin billets, which were at around $405-410/mt for July shipment. However, Italian rolling mills show abstention to offers for August shipment due to the fact that their domestic market usually slows down in August. Turkish origin billets were at $440-450/mt ex-works in domestic market this week. Rolling mills show interest to
billet purchases since the product prices continue strong in both export and domestic market. Last week and the beginning of this week, offers of
CIS origin billets made at $420-425/mt CFR have not seen much of interest; however, Turkish rolling mills started to consider these offers through the end of the week. In case bookings at such levels are heard, billets below 405/mt FOB Black Sea port level might become unavailable. In fact, some exporters are already making offers at $430/mt CFR levels to Turkish ports this week. Turkish origin billets are being offered at $425-430/mt FOB for export. Last week, small tonnage bookings have been heard. The narrow gap between
CIS billet and Turkish
billet provides advantage to the Turkish origin
billet in export. Northern
Africa and
Europe, which are in the market now, may support the Turkish origin to be sold in huge tonnages at these levels. Generally, market seems strong in Mediterranean, Black Sea and
Middle East. However, with the possibility that
Europe, US and Gulf may withdraw from the market slowly for August product and
billet shipments, some concerns remain in the market regarding which direction the
billet market might go. However, this year things may turn out to be different. The US domestic market is still strong and despite the holiday, it will continue to remain in the market during August. Gulf region is still active and they are particularly in need of
rebar. This situation may help
billet market to survive in Gulf region. Despite the holiday in August, if
Europe, especially
Portugal,
Spain and
Italy, keeps its domestic market and imports strong, the expectations for the end of the summer may have a positive outlook.