The CIS billet market has been showing strength since last week due to the recent uptrend seen in scrap deal and offer prices. Billet producers in the CIS have not been offering billets at levels below $400-405/mt FOB, and it is observed that they are trying to maintain this price range with the help of demand coming from the Far East.
While ex-CIS billet offers to Turkey have this week been at $420-425/mt CFR, it seems that buyers are currently following a wait-and-see policy. On the other hand, Turkish billet prices in the local market have this week again maintained their uptrend, with an increase of $10-15/mt seen compared to last week. Thus, Turkish billet producers' prices in the local market have this week increased to $430-440/mt ex-works, excluding VAT. Meanwhile, Turkish billet export offers have this week been at $430-445/mt FOB. However, it is observed that there has been no great interest in these prices this week from the rolling mills that operate in the local market due to the weak demand from their end-users.
While no great improvement in demand is expected in Muslim countries due to their religious holiday which starts at the end of next week, it is not certain whether the uptrend in billet prices will be supported by the finished steel side. Thus, we will have to wait further in order to see more clearly in which direction the billet markets will head.