This week, Turkish mills' steel billet export offers have seen a steep increase, due to increasing long steel prices and the continuing supply shortages.
Early last week, Turkish mills' steel billet export offers were standing at $650-660/mt ex-works. In the current week, their steel billet export offers have climbed by $40-45/mt, reaching $700-710/mt FOB on actual weight basis, for shipments in July. Even higher offers have also begun to be heard. However, SteelOrbis has learned from market sources that, due to the ongoing political turmoil in the Middle East and as buyers find these price levels to be on the high side, transactions have been scarce.
In the Turkish domestic steel billet market, while supply is low, offers stand at $700-710/mt ex-works on actual weight basis.
Steel producers from the CIS are currently offering July production 3SP-5SP grade steel billet to the export markets at $680-685/mt FOB. This price range indicates an increase of $30/mt as compared to last week due to steel billet supply shortages arising from producers' reduced capacity usage. SteelOrbis has heard from market sources that traders, who are not currently giving any offers, are expected to return to the market with offers lower than the producers' prices.
Lately, in line with steep price increases observed in the Turkish long steel market, scrap suppliers from the US and Europe have pushed up their offers. This is also influential in the steel billet price increases.