Towards the end of the 29th week of the year, it is observed that Turkish billet prices have been maintaining their strength in both the local and export markets. Although there has been an overall softening in scrap prices in Europe, it is not expected that the Turkish billet producers will reduce their prices, since the producers in Turkey have filled their order books in the rebar export market for late September and early October. Billet prices in the local Turkish market are at $1,270-1,300/mt ex-works, excluding VAT, while they are at $1,300-1,320/mt FOB in the Turkish export market.
It is heard that billet prices in the CIS, which have been on a downward trend in recent times, are currently at $1,120/mt FOB Ukraine, and that there has been strong demand for this material. In particular, it is known that the Turkish rolling mills have concluded some deals for this material in the last two weeks in the price range of $1,150-1,200/mt CFR Turkey for September shipments. It is expected that the range in question will be reshaped at $1,120-1,130/mt CFR Turkey in the upcoming weeks. On the other hand, Russia origin billet is being offered at $1,150/mt CFR Turkey.
Meanwhile, demand for Indian billet has been reported in Turkey, from the merchant bar mills in particular. The price level of India origin billet, which has increased to $1,130/mt FOB India due to the demand in question, is still at an acceptable level although there has been a softening in the billet prices in the Middle East and Turkey.
On the other hand, it is observed that the billet offers from Spain to Turkey at $1,150-1,175/mt CFR Turkey have not been met with acceptance. The reasons are as follows: the local rebar market in Turkey is considerably weak at the moment and the rolling mills in this country (which have been experiencing difficulties in selling to destinations other than the Persian Gulf) have been choosing to bide their time since they think that prices may decrease further.