Billet markets are active in the Mediterranean

Turkish origin billets experienced a very active period for exports last week. St 37 billets were sold to Morocco and Italy at around $405/mt FOB for late June/early July shipment. Furthermore, early shipment cargo was sold to Arabian Peninsula at slightly over this level. However, the scrap prices, which started to increase last week, may cause Turkish producers to ask higher prices for their new orders. On the domestic market front, rolling mills do not show interest to the prices of Turkish mills Isdemir ($435/mt) and Kardemir ($431/mt). In Turkey, imported billet market has not been active for a long time. Due to the keen increase in local billet price, especially merchant bar producers had difficulty in setting their material prices. In addition, due to the CIS billet sellers, who set their prices according to Turkish local billet prices, the most of the Turkish rolling mills kept clear of imported billet market. However, possible exports to Europe due to the increase in Euro/US Dollar exchange rate, the strong US market and the activity in Middle East and Gulf region may support Turkish mills to return to the imported billet market. CIS origin billets are active in Mediterranean and Middle East. CIS origin material, which seems to slowdown two weeks ago, started to rally again. Currently, there are no prices available below $390/mt FOB level in Black Sea ports. Middle East and Gulf markets are active. Furthermore, due to Euro/US Dollar exchange rate, Europe, especially Italy, shows interest to billet imports. Italian rolling mills, which did not show interest to offer levels of $400/mt two weeks ago, currently show affirmative attitudes to offer levels of $410/mt CFR Italian ports due to the increase in both scrap prices and Euro/US Dollar exchange rate. The price increases already concluded and due deals in Gulf, Middle East and Northern Africa's local markets may provide an advantage to CIS and Turkish origin billet in these regions.