During the current week, billet prices have continued to decrease in Turkey's domestic market against the background of the continued sluggishness in end-user demand, the recent fall in scrap booking price levels to Turkey, and the continuing decrease observed in finished steel prices.
Last week domestic billet prices in Turkey were standing at the level of $800/mt ex-works excluding VAT, while during the current week billet offer levels for the local market have been in a range of $700-750/mt ex-works excluding VAT. However, taking into account the decline in rebar prices to the level of $750/mt ex-works excluding VAT, it is seen that the acceptance of this week's billet offer levels by domestic mills is almost impossible. On the other hand, the export prices of Turkish billet are still in the range of $700-750mt FOB Turkey.
This week it is observed that CIS-origin billet offers have decreased by $50-60/mt compared to last week. It is heard that CIS mills have this week offered billets to the export markets at the range of $620-650/mt FOB for October and November shipments. Meanwhile, it is reported that Turkish mills last week concluded several bookings at the price level of $680/mt CFR Turkey.
The price levels this week in Italy's domestic billet market also recorded a fall compared to the last week. Italian billet prices are currently standing at the level of €540-550/mt ($758-772/mt) ex-works, though considering the weak demand from end-users for finished steel in Italy, this price range is expected to show a further decline.