The rising semi-finished and finished steel prices of recent weeks (due to strong scrap prices) have only this week started to be accepted on the buyers' side in the international markets, as opposed to the lack of acceptance observed during the previous six weeks. Apart from the demand for finished products from the Far East and the Middle East, demand for finished and semi-finished steel products has begun to increase as Egyptian importers have again started to ask for rebar.
While billet prices in the local Turkish market declined to $370-380/mt ex-works excluding VAT in the last week of May, this week they have risen to levels of $400-420/mt ex-works excluding VAT, under the influence of rising demand.
Meanwhile, ex-CIS billet offer price levels have continued to increase. While Russian mills were last week heard to be offering billets at the level of $380/mt FOB Russia, ex-CIS billet offers have this week been at $390-400/mt FOB. It is heard that some traders are offering the same material at lower prices, i.e. in a range of $380-390/mt FOB. It should be noted that prices may show variations depending on tonnage, producer and port.
In general, as long as scrap prices continue their strong trend and as long as there is demand for finished steel products, billet prices may be expected to move on a strong trend.
