CIS and Turkish steel billet producers keep close eye on €/$ exchange rate

Turkish mills' steel billet export offers have remained unchanged for four straight weeks, as can also be seen from SteelOrbis Steel Reference Prices. Accordingly, Turkish producers' steel billet export offers still stand at $695-705/mt FOB, for October shipments. In the meantime, domestic steel billet prices in Turkey have been maintained at $690-700/mt + VAT ex-works.
 
On the other hand, CIS producers' export offers for 3SP-5SP steel billet are still at $680-695/mt FOB, for October shipments. CIS producers are receiving a certain amount of steel billet demand from some Middle Eastern countries, especially from Saudi Arabia. However, most buyers are now focused on European steel billet offers.
 
Southern European mills' steel billet export offers stand at €485-495/mt ($669-683/mt) FOB and some transactions have been concluded to France, Morocco and to some Middle Eastern countries at this price range. Considering that steel billet supply is on the short side, it is thought that southern European mills may seek to push up their offers to above €500/mt ($690/mt) FOB in the coming period.
 
CIS and Turkish steel billet producers state that they are following closely the changes in the euro/dollar exchange rate, adding that it is difficult to predict the future trend. For the time being, steel billet offers maintain their firmness and producers are waiting to see the situation as regards the market and the exchange rate next week.