It is observed that billet prices on ex-works basis in Turkey are still moving down and are currently at $500-510/mt, indicating a $15/mt decline week on week. On the other hand, Turkish buyers’ price inquiries for both domestically produced and import billet are very slow, and so demand is at low levels. Market sources state that Turkish steel mills are giving very few offers to their domestic market, while discounts of $5-10/mt are believed to be applicable in the case of actual deals.
The price policy Chinese billet suppliers will adopt after their return to the market following the long national holiday (October 1-8) cannot be predicted, and so buyers both in Turkey and in the international markets are waiting until after the holiday to gain a clearer picture of the future trend of the billet market. Meanwhile, having reducing the volume of their offers to Turkey, scrap suppliers have started to increase their offer prices as of yesterday, October 3. As a result, market sources state that the downward movement of the local Turkish billet market may come to an end.
Currently, CIS-based traders’ billet offers to Turkey are at $490-495/mt CFR, while CIS-based steel mills’ billet offers to the same destination are at $515-520/mt CFR. Market sources state that Turkish steel producers’ firm bids for ex-CIS billet are in the range of $450-470/mt CFR, while demand for ex-CIS billet in Turkey is still at low levels.