In Turkey and in the CIS steel billet prices have increased in line with scrap price hikes.
In the past week, Turkish steel billet offers were standing in the price range of $585-590/mt FOB, while the latest ex-Turkey steel billet transactions have been reported at the level of $590/mt FOB. With Turkey's steel billet transaction levels surging on the back of the strong trend seen in the scrap market, toward the end of the current week producers have ceased to place export offers.
Turkish billet prices are not expected to register any drop in the coming period, due to the firmness of scrap prices. After Turkish long steelmaker Kardemir's billet sales of 27,000 metric tons in the middle of this week at the level of $602-605/mt, general steel billet quotations in Turkey have settled in a similar range, at $600-610/mt ex-works.
Meanwhile, CIS origin steel billet prices have maintained their upward trend. Last week, ex-Ukraine steel billet offers were standing at $575-585/mt FOB. However, after some Ukrainian mills increased their export offers to $600/mt FOB this week, some producers have stopped giving export offers. The rising trend observed in the scrap market, as well as the consistent improvement in steel billet demand, particularly from the Middle East, prevent CIS steel billet prices from declining.
With scrap prices expected to continue their strong trend in the coming period - mainly due to likely supply shortages because of more difficult winter conditions, this will also keep billet prices at higher levels.