CIS and Turkish mills still cut billet prices, buyers wait for prices to hit bottom

Recent declines seen in scrap prices have resulted in a softening in steel billet and finished steel prices. In the meantime, demand has remained sluggish since buyers are delaying their new steel billet purchases as they wait for prices to reach the bottom.

In the past week, Turkish mills' steel billet export offers have dropped by approximately $30-35/mt as compared to the previous week, declining to $635-645/mt FOB on actual weight basis for November shipments. However, lower offers are also available in the market. After the CIS producers started giving steel billet offers to the Turkish market at $635/mt CFR, Turkish mills have adjusted their domestic prices downward to $645-655/mt + VAT ex-works on actual weight basis.

The latest 3SP-5SP steel billet offers given by CIS producers to the export markets have been standing at $610-620/mt FOB. While the downward trend has continued in the past week, lower offers than this price range are also available in the market. In the meantime, it is thought that buyers in the CIS producers' export markets may start their new steel billet bookings when they believe that prices have reached the bottom.

In September, Turkey's major steel billet export destinations were as follows:

Source: Istanbul Mineral and Metals Exporters' Association (IMMIB)

In September, Turkey's total steel billet exports amounted to 177,478 mt, decreasing by 39.82 percent year on year. In August, Turkey's steel billet exports totaled 271,445 mt.