Due to the lack of demand for finished steel products in the Middle East and Turkey, demand for Turkish and also CIS origin billet is currently at low levels. In the Middle East and North Africa in particular, demand for semi-finished steel products are at low levels as traders and stockists do not want to enter Ramadan (to which just one month is left to go) with high stock levels and as they are buying finished steel products very slowly and with great caution.
Billet prices in the local Turkish market are currently at $420/mt ex-works excluding VAT on actual weight basis. Considering the local rebar price levels, demand from the Turkish rolling mills for billets (at fairly high prices at present) is very low. However, it is heard that some producers that do not want to stop their production operations are buying billets from time to time, though not large tonnages. Due to the strong import scrap prices, local billet levels in Turkey have been indicating greater strength as compared to local rebar prices. The high raw material costs are making it difficult for producers to decrease their billet prices.
Ex-CIS billet offers to Turkey have this week decreased by $10-15/mt. While most CIS billet producers are not taking a backward step in their prices as they have tightened their production levels and filled their order books for August, it is heard that international trading firms are now offering at levels below those of the CIS producers. However, demand is weak in response to the offers in question.
Due to the lack of demand for finished steel products, billet price levels in Turkey will likely be determined in the upcoming days by the changes which occur in import scrap prices.