It was observed last week that billet prices in Turkey declined following the downward movement of import scrap prices in Turkey. At the beginning of the current week, before the news of rises in import scrap prices were heard, domestic billet quotations in Turkey once again fell. But after the rise recorded in import scrap prices this week, domestic billet quotations have remained unchanged. During the last price revision in the local Turkish billet market at the beginning of the current week, Turkish steel producers’ billet offers for their local market declined by $25/mt on the lower end and by $15/mt on the upper end to $475-490/mt ex-works, and have remained in this range since then. Meanwhile, the ongoing weakness of demand in the local Turkish billet market remains noteworthy.
During the past week, CIS-based billet exporters’ offers to Turkey have declined by $10/mt on the lower end and by $15/mt on the upper end to $470-480/mt CFR. Although, Turkish buyers are reported to have concluded new billet purchases in this price range over the past week, demand for ex-CIS billet in Turkey has failed to improve and is still weak. On the other hand, it is believed that the levels of Chinese billet prices which are at $535-545/mt FOB - very high as compared to ex-CIS billet quotations - as well as the price increases seen in import scrap deals in Turkey heard on November 14-15 may provide some support for ex-CIS billet prices.
Additionally, stating that Turkish steel mills cannot ignore the fact of higher production costs caused by higher import scrap prices, market sources do not expect sharp price decreases in the local Turkish billet market in the short term, also considering the tightness of scrap supply in Turkey.