Raw material may continue to have determining role in billet prices

Given production costs and strong bookings for May, major CIS billet producers are observed to be maintaining their prices at the level of $600/mt FOB. Meanwhile, traders' position offers indicate lower levels.
 
While traders' offers for CIS origin billet given to Turkey are standing at the levels of $580-585/mt CFR, local Turkish billet market prices have not declined and so Turkish billet buyers may prefer imported billet if the traders' competitive offers decrease further. Also, it is reported that local rollers are showing interest in LME billet which stands at more reasonable prices.
 
In the local Turkish market, billet prices are generally standing at the level of $580-590/mt FOB, while it is also possible to hear lower offers from Turkish producers. The Turkish mills are offering billet to North African markets at the same levels.
 
Meanwhile, in the Far Eastern market, both Asian producers' prices and imported billet offers have registered price declines. Russian traders' offers to the Far Eastern market are standing at $630/mt CFR, while Asian producers' offers are at the level of $640-645/mt CFR.
 
Due to high production costs, billet producers worldwide are waiting to see the market trend before revising their prices, while a large amount of position material is likely to exert a downward influence on the market trend. In the coming days, we will be able to see how scrap and iron ore prices will affect the prices of billet.