CIS billet export offer prices were at $790-800/mt FOB Black Sea at the beginning of the current week. In addition, it was heard that some deals were concluded in the same period at price levels close to $800/mt FOB. Coming towards the latter part of the week, price levels of $830-840/mt FOB Black Sea have even started to be mentioned in the market.
Isdemir opened its billet sales on Tuesday at the price level of $830/mt ex-works excluding VAT, and the producer sold 110,000 mt of material before closing its sales on the same day. After this, a price level of $850/mt ex-works excluding VAT started to be mentioned. Towards the end of the week, the EAFs have started to give prices at levels of up to $880/mt ex-works excluding VAT.
Turkish producers do not appear so visible in the export market. It was heard that a sale was concluded in the early days of this week to the UAE at $885/mt CFR. However, due to the upwards movements seen in long products in the local and export markets coming up to the last days of the week, it is reported that some producers have even been mentioning a price of $900/mt FOB.
Billet prices in the local Italian market are currently at €515-520/mt ($802-810/mt) delivered to rolling mill in northern Italy, on two to three month open account basis, excluding VAT. The prices in this market have been increasing in line with the international trend. However, they are considerably lower compared to the prices in the CIS and Turkey. For this reason, it could be said that exports to Italy from the countries in question are thought to be unlikely.
It is heard that Iran, which sometimes performs billet exports, may make billets offers in the current period, and it is also heard that these offers would be at $825/mt FOB and above.
Billet supply in the international markets is fairly tight for the time being. Most of the producers in both Turkey and the CIS have filled their order books until late May. The Turkish and CIS billet producers have increased their prices by $100/mt compared to the price level of last week. They are in a fairly comfortable situation due to the tightness of the billet supply. However, rolling mills in the overall market are uneasy with these increases. On the other hand, if the increases continue at a similar rate, European billet producers may become billet exporters.
€1 = US$1.557