Scrap bookings provide support for CIS and Turkish billet prices

Friday, 03 April 2009 12:17:05 (GMT+3)   |  
CIS and Turkish billet prices have shown an increase of about $15-20/mt over the past week. Having concluded rebar bookings to the UAE, Egypt and Iraq for significant tonnages, Turkish mills have also moved to conclude high tonnage scrap purchases to sustain their finished steel sales. The rise in scrap prices following these purchases has also caused billet prices to increase. Turkish billet export offers are now in the range of $370-380/mt FOB Turkey, while CIS billet offers have reached levels of $340-350/mt FOB CIS.

With there being a high probability of Turkish billet prices showing further increases considering the price levels of scrap bookings, finished steel prices may also receive impetus for upward movement. Possible fresh demand coming from North Africa and the Middle East in particular may pave the way for price increases in finished steel. In this event, billet prices will not be so dependent on movements in scrap and finished steel prices, and will be likely to show increases.

In order to ensure steady price acceleration it is quite important for Turkish rebar export offers, which have reached $380-460/mt FOB in a short time, i.e. in just ten days, to push the higher end of the current price range.


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