Due to the ongoing scrap purchase activity of Turkish finished steel producers, CIS billet producers' prices have this week remained unchanged after the uptrend seen last week. While ex-CIS billet export offers have this week been at $395-405/mt FOB, it is heard that the CIS producers have almost filled their order books for November. Furthermore, it is also heard that some traders seeking to reduce their stocks may offer at lower prices compared to the abovementioned, depending on tonnage.
With the Turkish finished steel producers continuing their sales (mostly to Africa) and also their scrap purchases, CIS billet producers are keeping a very close eye on the price movements in finished steel and especially on the efforts of some Turkish finished steel producers to increase prices. It is also known that CIS billet producers are not inclined to lower their offer prices thanks to their sales activity to the Far East.
While local billet producers in the Turkish domestic market are selling billets at $405-410/mt + VAT ex-works, in some cases offers are also heard at $400/mt + VAT ex-works for December delivery and for cash payment. With Turkish producers appearing to be at ease in November thanks to their previous sales, their export billet price levels are currently at $410-420/mt FOB. Also, it is possible that some producers may offer to the Middle East at lower prices.
According to market players, as of next week the future trend of billet prices will be determined by the new scrap price levels and by the improvements in the finished steel demand in general.