Having performed intensive scrap purchases in recent weeks, Turkish rebar producers this week slowed down their scrap purchase activity after Egyptian producer EZDK lowered its July prices for the local market during the week. With EZDK's new prices, rebar prices in the Egyptian market, which has been the most active market for Turkish rebar producers since early 2009, have decreased by EGP 150/mt ($27/mt) in both June and July.
While billet prices were at $430-440/mt ex-works excluding VAT in the local market and at the same levels FOB in the export market towards the end of the last week and in the early days of this week, no change has been observed in this situation coming towards the end of this week. Meanwhile, demand for Turkish billet has been heard this week from the Arabian Peninsula.
With ex-CIS billet offers at price levels of $410-425/mt FOB for September shipments still at the same levels as last week since order books for July and August have been filled, it is heard that buyers are not in a rush to conclude deals for September. Billet buyers who feel that it is impossible to predict the direction of the billet markets in September are really cautious in their approach to billet purchases.
Billet price levels, which are normally in line with scrap levels and end-user demand for finished steel products, may start to indicate some uncertainty in the coming days both due to the lack of end-user demand and the current low scrap purchasing activity on the part of Turkish producers. Unsure about the future direction of market prices (whether they will continue to increase or register a downtrend), market players are extremely careful in buying material for the time being.