Buyers approach higher billet prices with caution

Export offers of Turkish billet producers this week has not changed much, with prices remaining at $660-665/mt FOB for June shipments on actual weight basis. The rapid price hikes experienced since mid-April and the uncertain market conditions have caused buyers to act cautiously and to avoid booking material.
 
In the CIS billet market, some producers have been anxious to avoid giving price indications or offers at high levels for June production, as they seek to test the waters in the market. Billet offers to Turkey by CIS traders have narrowed in terms of price range as compared to last week, and currently the price level stands at $660/mt CFR on actual weight basis, as SteelOrbis has learned.
 
In the Turkish domestic market, local steel producer Kardemir announced a $5/mt price hike for its billet on May 5, with the new price level of S235JR grade (St37) 130 mm x 130 mm x 6-12 m billet rising to $650/mt, excluding VAT, ex-works. The MT III-A billet price level for the same billet size was also revised upwards to $655/mt excluding VAT, ex-works. Kardemir sold approximately 44,000 mt of billet by May 10, before closing its billet sales. The supply of billets is currently low in the Turkish market, and price levels are generally in the range of $655-660/mt ex-works on actual weight basis.
 
After the euro/US dollar exchange rate  fluctuation forced scrap prices ex-Europe into a downward revision, it is not clear whether price levels for billets will maintain their stronger price levels. Market players indicate that it is difficult for the moment to predict the direction of billet prices, and this situation is causing uneasiness among buyers.