Market dynamics changing in the billet markets?

Although we have not seen any huge increases in scrap prices, price movements in billet markets have reached their peak this week. CIS origin billet offers this week have been in a range of $340-345/ton FOB. Major reason for such increase can be attributed to the sales having been concluded with certain North African, Middle Eastern and European countries at $335-340/ton FOB levels. In Europe, the biggest interest towards CIS billets came from Italy, known to export a great deal of rebar to Algeria. Turkish billet buyers have not displayed any interest in CIS origin billets for two weeks. Having had directed their focus on import billets upon the incessant increase in the local billet prices, Turkish buyers were failed to find what they were looking for, with the increase in ex-CIS offers. This week, billet prices have been in a range of $370-375/ton ex-works in the local Turkish market. Since local demand for long products has not been strong, despite the increase in the local prices, billet demand from rolling mills has not been strong. Moreover, Kardemir's interrupted strategy of coming in short intervals to the market for billets and then closing its sales after concluding certain quantity, causes a kind of uncertainty in the local Turkish market. Turkish billet offers for export have stood in a range of $360-365/ton FOB. Since the CIS origin billet prices have reached $345/ton FOB level, certain North African, Middle Eastern and European countries have again started to show interest in Turkish origin billets. SteelOrbis has heard that there are Turkish origin billet bookings concluded at around $360/mt FOB. As an overall evaluation, we may say Middle East, Europe and partially Gulf region countries have joined the price increases in the long product markets, initiated by Turkish mills, on the back of rising scrap prices. CIS origin billets and Turkish billets have increased with the rise in scrap prices. Demand for billet was firmed up as the demand for long products strengthened. This development has caused an increase in billet sales especially from CIS. On the other hand, since the price gap between CIS origin billet and Turkish billets has narrowed this week, demand for Turkish billet has revived.