CIS, Turkish origin billets continue increasing

CIS origin billets were offered at $410-415/mt FOB Black Sea ports at the beginning of the week. However, the offers increased to $420/mt FOB and above towards the end of the week due to the sales concluded at $410-414/mt FOB Black Sea. CIS billet producers have been in difficulty for a long time in Turkish market. However, with the keen increase in Turkish long prices that triggered the domestic billet prices, CIS origin billet bookings were heard in Turkey. SteelOrbis has heard that there were bookings concluded at around $430/mt CFR Turkish ports at the beginning of the week. New offers rose to $440-445/mt CFR Turkish ports. Europe, especially Italy, was not eager for either CIS or Turkish billet for August shipments in the previous weeks. However, due to the increase in Ukrainian long product prices as of last week, Italian producers may start being interested in late July / August billet shipments, by increasing their rebar prices especially in Algeria. The minimills in Turkey were offering at $460-470/mt ex-works to the domestic market at the beginning of the week. Kardemir's sales were closed while Isdemir couldn't conclude any sales at price list of $440/mt due to its market debt. Kardemir announced its price list for billet as $467/mt on Friday; however, the sales were closed after 15,000 tons of billet sales were concluded. Isdemir prices are expected to be around $470-480/mt next week. On the Turkish export front, the keen increase in long products and billets in domestic market also contributed to the increase in export prices. There were levels hovering at $440-450/mt at the beginning of the week. However, producers were not much eager to sell at these levels. With domestic demand, the majority of billets can be sold to the rolling mills in domestic market or can be converted to the long product. This situation will reduce the availability of billet and may cause prices to show an upward trend.