Producers maintain their price levels in billet markets

In the CIS billet markets, which were characterized by uncertainty as they entered the current week, it is observed that producers have not lowered their prices below certain levels, while lower offers from traders have continued to be heard this week. Having sold their May production, producers are trying to maintain stable prices, given the increases in the iron ore and coal markets. While producers do not want to lower their prices below $620/mt FOB, traders who have long position material can sell their products at much lower prices than the producers.
 
In the local Turkish market, due to the decreased rebar prices along with the declines in prices of other long products, re-rollers are observed not to be looking favorably on Turkish producers' offers. Some buyers have turned towards LME billet since the offer levels are lower than in the domestic market. In the export markets, demand is likely to continue to come from the Middle East, though buyers have started to adopt a wait-and-see stance due to the decreasing prices.
 
In the coming week, in determining their own prices producers are expected to watch traders' prices in the market and also to keep an eye on the trend of the scrap market.