CIS billet may offer better terms than Turkish counterpart

Following the consecutive price increase announcements made by Turkey's one of the major producer Kardemir in two weeks, local billet price of the producer rose to $487/mt level. Although such price level was not accepted, the market was expecting Isdemir to similarly increase its 100 x 100 mm of St 37 billet price to $480/mt or above. However, Isdemir has only increased its price level to $460/mt. This situation has surprised the Turkish billet producers as well as the CIS producers who sell their material to Turkey. Billet producers were asking for around $460-470/mt in the local Turkish market last week. With the increase of Kardemir's prices at the beginning of the week, minimills raised their billet prices to $480-490/mt. However, rolling mills have not shown any interest at these levels. Upon the announcement of Isdemir increase, domestic prices are expected to settle at around $460-470/mt. CIS origin billet climbed to $420/mt FOB Black Sea at the end of last week. Early this week, certain CIS suppliers sold their material at $420-425/mt FOB Black Sea, while others made offers at $435-440/mt FOB Black Sea to Turkey. However, these levels were a bit too high after billet price announcement of $460/mt made by Isdemir. In the strong long product market situation in Middle East and Gulf, CIS origin billet may have an advantage with the offer levels at $420-425/mt FOB Black Sea against the Turkish since finding export offers below $450/mt FOB seems a bit difficult due to the local Turkish billet prices.