Billet prices continue to rise in Turkish domestic and most international markets

This week, billet offers by Turkish producers for June shipments have improved by  $15-20/mt and current offer levels now stand at $645-650/mt FOB. Buyers continue to approach the new billet levels with caution and so far no significant booking has been heard at these levels.
 
In the Turkish domestic market, billet price levels on actual weight basis are currently at $640-645/mt ex-works; however, prices above this range have also started to be heard. Nevertheless, it is still not clear whether these levels will find acceptance from the buyers' end.
 
 In the CIS region, offers given by traders have continued to climb this week. CIS producers' order books for May shipments are now full, and following the price increases by Turkish producers the CIS traders have formed their offer levels for June shipment billets at $610-615/mt FOB. Offers from the CIS to Turkey now stand at $630-635/mt CFR.
 
The chaotic situation in the Middle East and North Africa (MENA) region has weakened demand in these markets. Iranian buyers, aiming to use this as an advantage, last week tried to pull Russian billet offers at $630-640/mt CFR down to $620-630/mt CFR levels for June production and July shipment.
 
In the billet market, overall demand still appears to be slow, and the approach of buyers will be crucial in determining whether the new billet price levels stick or otherwise.