Following the fall recorded in scrap prices in recent days, ex-CIS billet prices have decreased by $10/mt as compared to the levels observed two weeks ago and are currently at $420-430/mt FOB. However, market sources state that buyers consider the range of $420-425/mt FOB to be more attractive as they mostly refuse offers given on the upper end at $430/mt FOB.
It is observed that buyers in the local Turkish billet market have procured some of their needs from Kardemir’s billet sales opened early on Tuesday, June 11, and closed later on the same day after sales totaling about 64,000 mt.
SteelOrbis has been informed that ex-CIS billet offers to Turkey are at $445/mt CFR Zonguldak and $435/mt CFR Marmara. Additionally, it is observed that, considering that delivery periods for ex-CIS cargoes are 7-10 days for spot sales, Turkish buyers have not accepted these price levels for ex-CIS billet, while they have been meeting their needs from their domestic market as they wait for lower price levels.
Buyers, believing that domestic billet prices in Turkey may fall due to the weakness of demand and lower scrap prices resulting from surplus supply, are currently adopting a wait-and-see stance as regards ex-CIS billet purchases and are trying to exert pressure on prices.
On the other hand, finished steel demand in both Turkey’s domestic and export markets is at low levels, causing finished steel prices in these markets to move down, and also causing Turkish mills to adopt a cautious stance as regards ex-CIS billet imports.
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