The uptrend seen in recent weeks in Turkish and CIS billet prices has also continued during the current week. Scrap demand in these regions and also the continuing rising trend of scrap deal prices may be considered as the main reasons for the billet price increases.
In the local Turkish billet market, last week price levels of $415-430/mt + VAT ex-works were being mentioned. This week, however, when a producer in Turkey announced a price level of $432/mt + VAT ex-works, it managed to sell 30,000 mt of billets on the back of strong demand. While it is heard that Turkish billet producers have this week been offering to the export markets at $430-440/mt FOB Turkey, billet prices may go up further if the current scrap purchase activity at high price levels continues.
Ex-CIS billet offers have this week increased by $10-20/mt compared to last week, and are currently standing at $410-420/mt FOB CIS. Also, it is observed that billet buyers (the Middle Eastern buyers in particular) are making inquiries for billet price levels despite the increasing billet costs. Buyers mention that CIS billet holds an advantage due to its more attractive price.
Demand for finished products is sluggish in general in the international markets for the time being. Egypt and some other Middle Eastern countries (which had previously been active) are buying at a very slow rate these days. Although end-user demand for finished products is at low levels, the rising finished steel price levels have affected the billet markets positively and have boosted demand for billet in general.