While buyers in the local Turkish billet market have continued their purchases only in line with their needs, domestic billet prices in Turkey have continued their upward movement over the past week amid higher import scrap quotations and the increases seen in global billet and long steel prices. Turkish steel mills have increased their domestic billet prices by $15/mt on the lower end and by $25/mt on the upper end week on week to $485-500/mt ex-works. Additionally, domestic billet quotations are expected to increase further after the import scrap deal concluded in Turkey today, August 9.
Market sources report that domestic billet transactions in Turkey have been concluded this week at the lower end ($485/mt ex-works) of the above price range, while the higher end at $500/mt ex-works has mostly been offered by the steel mills in Turkey’s Iskenderun region and has failed to gain acceptance for now.
Having exerted upward pressure on the global billet market for some time now, in the past week Chinese billet export quotations have risen by a total of $20/mt to $500-510/mt FOB, though prices occasionally moved sideways during the given week and have indicated a decline today. However, overall, Chinese billet export prices have continued to provide support for the upward movement of ex-CIS billet prices.
As a result, ex-CIS billet offers to Turkey, which have moved up by an average of $12.5/mt over the past week, are now at $470-480/mt CFR. Market sources state that the most recent ex-CIS billet bookings in Turkey have been concluded at $465-470/mt CFR. Turkish liquid steel mills are still showing good demand for import scrap and no demand for ex-CIS billet, while rolling mills are purchasing ex-CIS billet when they face difficulties in terms of buying domestic billet.