CIS billet and rebar export prices more reasonable than Turkish prices

Amid recent scrap price hikes and signs of further upcoming increases in scrap prices, as well as higher steel prices in the Turkish domestic market, Turkish mills have raised their rebar export offers by $15/mt as compared to last week to $610-630/mt FOB, while their steel billet export offers have increased by $10/mt since last week to $560-570/mt FOB.
 
Turkish mills are having difficulties in finding buyers at their now higher prices, while more reasonable steel billet and rebar offers coming from the CIS are attracting buyers' attention, as the price increases of CIS steel mills, which usually follow the Turkish billet and rebar market and adjust their prices accordingly, have been only marginal. Ex-CIS steel billet offers have only increased by $5/mt since last week, reaching $510-520/mt FOB, while CIS rebar export offers have remained unchanged at $575-590/mt FOB.
 
Buyers in the Middle East, North Africa and Europe state that an increase in billet and finished steel prices was already expected. However, the Turkish mills' price hikes go beyond the actual market reality, according to these buyers, who also think that the price increases observed in ex-CIS offers are more reasonable.