Declining supply pushes up domestic billet prices in Turkey

As a result of the declines seen in domestically produced billet and rebar supply in Turkey, local steel producers have increased their domestic billet offers by $10/mt on the lower end and by $5/mt on the upper end over the past week to $425-435/mt ex-works. Accordingly, domestic billet quotations in Turkey have increased to during the past week, while buyers have continued their price inquiries, though they have also maintained a cautious stance given the sharp rise in domestic billet prices.
 
On the other hand, having improved slightly last week, Turkish buyers' demand for ex-CIS billet has remained steady in the past week as they are experiencing problems in procuring domestically produced billet. Since the increase seen in Turkish finished steel producers' price inquiries last week, it is observed that CIS-based suppliers' billet offers to Turkey have been trending at $410-425/mt CFR. Meanwhile, market sources state that Turkish steel mills, which find CIS-based suppliers' delivery times to be suitable, are concluding deals for ex-CIS billet at $410-415/mt CFR. 
 
Iron ore prices in China have mostly fluctuated during the past week. However, as they increased on May 16-17, Chinese billet export quotations have also moved up by $5/mt week on week to $400-410/mt FOB. Since Chinese billet has failed to ensure any price or delivery time advantage for Turkish steel mills, it is considered that Turkish buyers are unlikely to conclude new booking of Chinese billet.