Demand for long products in the international markets continued to remain slow this week. The lack of demand which has caused a softening tendency in long product prices in recent weeks has also led to a slowdown in the billet purchasing activity of long product producers.
The local billet market in Turkey has since early this week seen transactions at price levels of $480-490/mt ex-works for small tonnages, while it has been possible to achieve prices at lower numbers for larger tonnages. As compared to rebar rolling mills, merchant bar producers find billet prices somewhat more acceptable. The general price range offered by Turkish producers for the export markets stands at $470-480/mt FOB; however, bookings concluded mainly to the Far East and the Middle East are known to be below such numbers.
CIS billet offers have remained at similar levels to those seen last week, i.e., at $460-470/mt FOB. Billet producers who have filled their order books for February production are not giving any quotations for March production yet, in view of still pending iron ore negotiations and the yet-to-be-clarified raw material costs.
Transaction activity in the Far East is slowing down due to the Chinese New Year and the lower price expectations of buyers in this region are causing both the Turkish and the CIS suppliers to soften their offers to the region compared to last week.
Demand for long products in the international markets currently remains slow, with only Egypt and some Middle Eastern countries currently concluding purchases. Despite the slow demand and consequent softening of prices in the long product markets, billet prices are finding it comparatively easier to maintain their current levels, as scrap prices have not yet seen any major change.