Demand for domestic billet in Turkey has declined over the past week as a result of the lower long steel demand caused by the sharp increases seen in long steel prices. However, due to the rises recorded in import scrap quotations in Turkey last week, domestic billet prices have moved up by $15/mt on the lower end and by $25/mt on the upper end week on week to $500-525/mt ex-works.
During the past week, import billet offers to Turkey have also moved up, with ex-CIS billet offers increasing by $30/mt on the lower end and by $40/mt on the upper end to $500-520/mt CFR.
Following the warning issued by the China Iron and Steel Association (CISA) on Friday, August 11 in relation to speculation and its contribution to the rapid increases in steel prices, it is observed that domestic finished steel prices in China as well as the global iron ore quotations have declined. As a result, Turkish billet buyers are now maintaining a cautious stance as regards concluding new purchases and instead have started to stand back and monitor the market.