Having declined continuously in previous weeks, this week CIS and Turkish billet prices have remained unchanged compared to last week. Although finished steel prices have decreased in the Turkish markets, a significant slowdown has been observed in the decline rate of billet prices as scrap prices have continued to maintain their strength.
Considerably interest was shown this week in a local Turkish producer's announced billet price of $335/mt ex-works excluding VAT, with the producer in question heard to have sold 31,000 mt of billets. While merchant bar price levels have this week been stable compared to last week, so far in the local Turkish finished steel market rebar prices have been decreasing. Given the fall in rebar prices and the continued strength of billet prices, it is observed that the rolling mills doing business in the local Turkish market are finding it hard to give definite rebar price levels.
Meanwhile, ex-CIS billet offers have remained unchanged at levels of $295-305/mt FOB. In particular, billet price levels will be unlikely to go down further if scrap prices maintain their strength globally. In addition, finished steel producers are experiencing difficulties due to weak end-user demand for their products.
The upcoming days are very important as regards the scrap price situation, as they are expected to reveal whether prices will fall or otherwise. If scrap prices fall, end-users will likely expect a decline in finished steel prices. On the other hand, if scrap prices keep their strength, steel markets with stable price levels may at long last be seen again.