Although there has been a lack of activity as regards scrap offers and deals concluded to southern Europe in recent weeks, billet prices in this region have been maintaining their rising trend due to the high demand and consumption levels seen in long products.
It was heard in the early days of this week that the billet price in the local Turkish market was at $1,200-1,300/mt ex-works excluding VAT. However, towards the end of the week, the price in question has gone up to $1,270/mt ex-works excluding VAT following the latest rebar deals concluded to Dubai. Turkish producers have been offering billets to the export market at the price level of $1,300/mt FOB. However, since international demand has increased and since overall longs prices have gone up, billet prices may go up as of next week.
While CIS origin billet offers for export have been at $1,200-1,220/mt FOB as of early this week, it is heard that there have been some offers from the same source to southern Turkey at the price level of $1,250/mt CFR Turkey.
Just as in Turkey, the insufficient billet supply in Italy in comparison to domestic billet demand has been making things hard for the rolling mills. The billet price level in this country has this week been at €810/mt ($1,265/mt) ex-works, excluding VAT.
Due to possible demand-driven increases in scrap and long products due in the upcoming days, billet prices may also increase.