Black Sea and Mediterranean billet markets entering New Year strongly

After climbing strongly in December, CIS-origin billet is continuing its impressive performance up to the New Year. CIS billet export offers are currently in the $415-425/mt FOB Black Sea price range for February shipments. However, it is not possible to find $415/mt FOB Black Sea offers from big trading firms or producers. Their offers are mostly at $420-425/mt FOB Black Sea. CIS producers expect that there will be higher prices after the New Year. CIS billet bookings have been heard in Turkey's Izmir and Iskenderun regions due to the current billet shortage in Turkey. The Turkish rolling mills, which were able to conclude purchases at $410/mt FOB Black Sea in early December, have concluded most of their recent bookings at $420-425/mt FOB Black Sea. Furthermore, the demand for CIS billet in Middle East countries also seems strong. Turkish billet prices in the domestic market are in a range of $455-460/mt. The billet demand in the domestic market is strong due to the relatively high rebar prices. Therefore, Turkish producers are nor eager to export billet. However, Turkish producers are asking above $450/mt FOB for February and late February shipments in case of billet demand from buyers. It has even been heard that some customers in the Middle East are ready to pay above $460/mt FOB for prompt January shipments. The billet market is relatively strong. The demand of the Middle East and North African countries is very good. Currently, most customers are experiencing difficulties in obtaining billet supplies. As a result, most rolling mills in these regions are looking for prompt shipment of cargoes. However, for the time being it appears that this is not possible from CIS and Turkey. This situation has enlivened the billet market. In addition, it is not possible to find suitable prices and prompt shipment of goods from alternative markets – India, China or Brazil. On the other hand, the rumors that the Chinese billet export tax may increase and that customers in the Italian longs market may begin purchases again may jazz up the billet market even further.