Buyers of Turkish steel billet delay purchases, finding prices high

As the increases observed in long steel prices in previous weeks in the Turkish domestic market have stalled this week, Turkish mills' steel billet export offers have not changed and still stand at $700-710/mt FOB. As can be seen also from SteelOrbis Steel Reference Prices, steel billet export offers remained at $650-660/mt FOB on actual weight basis throughout May. However, in the last week of May, these offers have suddenly climbed above $700/mt FOB. Yet, finding this price level to be on the high side, buyers in the Middle East and North Africa are delaying their purchases for the time being.
 
In the Turkish domestic market, local steel producer Kardemir announced a $60/mt price hike for its billet on June 7, with the new price level of S235JR grade (St37) 130 mm x 130 mm x 6-12 m billet rising to $710/mt, excluding VAT, ex-works. The MT III-A billet price level for the same billet size was also revised upwards to $715/mt, excluding VAT, ex-works. However, no transactions have been heard so far. In the Turkish domestic market, steel billet supply is on the short side and local offers stand at $700-715/mt ex-works.
 
SteelOrbis has learned that steel producers from the CIS are currently offering July production 3SP-5SP grade steel billet to the export markets in the price range of $680-690/mt FOB, increasing slightly by $5/mt as compared to last week. SteelOrbis has further learned that CIS traders, which were not giving any offers last week, have returned to the market with their offers at $670-675/mt FOB for July shipments, while even slightly lower prices can be heard.
 
Given that the long steel price increases have come to a standstill and that traders have softened their new billet offers, market players are now watching to see if Turkish mills will adjust their steel billet prices downwards in the coming week, considering that buyers in the mills' export markets have found their prices high.