It is observed that the trading activity in the local Turkish billet market has failed to accelerate following the end of the holiday period which started on August 30 with the national Victory Day holiday and continued with the Feast of Sacrifice (Aug. 31-Sept. 4). Accordingly, trading activity in the domestic market is still at low levels. With import scrap prices remaining stable over the past two weeks, Turkish steel mills’ billet offers to their domestic market have also remained unchanged in the same period at $520-535/mt ex-works. On the other hand, market sources state that steel producers are seeking to increase their domestic billet quotations but, with buyers postponing their purchases due to their belief that uncertainties exist in the market, Turkish mills are not in a position to raise their domestic billet prices for now.
CIS-based suppliers’ billet offers to Turkey have increased by $15/mt on the lower end and by $10/mt on the upper end over the past two weeks to $535-545/mt CFR. Meanwhile, market sources report that Turkish buyers are not willing to conclude purchases of ex-CIS billet in this price range.
Additionally, Chinese billet export prices have fluctuated during the past two weeks and are currently at $535-545/mt FOB. Chinese billet suppliers consider domestic sales prices to be more attractive compared to export prices and so they are focusing on their domestic market.