Billet markets anticipate greater stability in coming period

As a result of the lack of stability in raw material and finished product prices, billet prices have followed various paths in different regions.
 
In the CIS region, it is thought that inventories have decreased as compared to previous levels, while billet prices, which were at the level of $450/mt FOB early this week, are seen to have been lowered by some producers towards the end of the week. Also, it is observed that some major producers are not giving offers, considering their costs and due to the instability of raw material prices. In the CIS region, more stable price levels are expected in the coming months in light of the decline of supply and stabilization of demand with the anticipated production capacity cuts.
 
A lower price level has not been heard in the market after an ex-CIS billet booking to the Turkish market was concluded at the level of $435/mt CFR. Traders' offers to Turkey were generally in the range of $440-450/mt CFR early this week. After transactions to Middle Eastern countries at levels of $470-480/mt CFR, Turkish producers' billet export offers are known to be in a range of $450-460/mt FOB, while it is heard that some major producers have the possibility of concluding sales to North Africa at lower levels.
 
Since the current billet prices are workable for some markets after the recent price decreases, some traders have started purchasing at these levels toward the end of this week.
 
In order to compete with the producers which operate with scrap, billet producers are focused on the iron ore talks for Q3 due to the high costs of iron ore. Billet producers and buyers are expecting more stable price levels in the coming week, despite the continuing downward trend.