Demand in the international markets has this week been sluggish for long products, the prices of which have been on a softening trend in recent weeks. This sluggish demand has caused a slowdown in the billet purchasing activities of Turkish longs producers. As of early this week, billet price levels in Turkey have been at $370-380/mt ex-works excluding VAT for large tonnages, and at $390/mt ex-works excluding VAT for small tonnages. It is heard that a Turkish producer has concluded sales this week at $380-390/mt ex-works excluding VAT for large tonnages. While the abovementioned price levels seem reasonable in general for merchant bar producers, it cannot be said that the same price advantage exists for rebar producing rolling mills. However, Turkish rebar producers that have been offering rebars to the Iraqi market at higher price levels compared to local Turkish price levels may find the general billet price level of $380/mt ex-works to be acceptable. Unfortunately, the Iraqi market has this week been less active compared to recent weeks.
Meanwhile, this week ex-CIS billet offers have shown hardly any change compared to last week and are standing in the range of $355-365/mt FOB. According to the market players, CIS producers' billet offers are at reasonable levels when considering raw material costs.
Global scrap prices have also maintained their price levels this week due to the strong scrap demand from the Far East. With scrap prices maintaining their levels despite the softening in long products and billets, CIS and Turkish billet prices have this week found it easier to hold on to their levels.