CIS origin billet prices have this week declined to the levels of $375-390/mt from the last week's $410/mt FOB due to the fact that there has been no support from end user demand for the uptrend in finished steel products and due to the softening scrap prices for two weeks in a row. It was observed in recent weeks that the EAFs in Europe, Turkey and Middle East bought CIS origin billets due to high scrap prices. However, looking at the past week, mills are hesitating to buy large tonnages as there has been no positive mood in the Turkish domestic market where some softening observed in raw material, semi finished and finished products' prices, as well as weak end user demand and current financial crisis. Only buying material in line with their needs, rolling mills and EAFs in Europe, Turkey and Middle East are trying to catch the best price levels for billets, whose prices have been experiencing a downtrend.
In Turkish domestic market, billet prices have been hovering at $400-435/mt ex-works, excluding VAT. Due to the fact that the finished steel products' prices (rebar prices in particular) have been at significantly low levels in traders in Turkey, rolling mills that trading with local market are having difficulties in buying billets or these mills are slowing down their production. However, rolling mills that have exporting opportunities have turned their direction to the Ukrainian origin billets. Some billet producers in Turkey are offering billets with higher prices levels compared to the others in the same market. The main reason behind this movement is the fact that those rolling mills (which are offering billets with higher price levels) have high priced scraps in their stocks.