In parallel with the increases recorded in import scrap prices in Turkey, domestic billet prices have increased further by $10/mt week on week to $470-475/mt ex-works. Market sources state that Turkish billet producers have been concluding sales to their domestic market at $470/mt ex-works since last weekend. Also, domestic billet prices may continue to increase in the coming days due to the rises seen in import scrap prices in Turkey this week, according to market sources.
Meanwhile, ex-CIS billet offers to Turkey are still moving up, rising by $7.5/mt week on week to $460-465/mt CFR. According to market sources, Turkish steel mills continue to make price inquiries for ex-CIS billet but the current price levels are considered to be on the high side and so Turkish finished steel producers’ demand for billet from the CIS region has declined over the past week. Additionally, Turkish liquid steel producers still prefer import scrap instead of billet due to more attractive prices for the former. Turkish steelmakers’ demand for import scrap is still at good levels, while several scrap deals have been heard since the beginning of the current week.
Chinese billet quotations have increased by $10/mt during the past week to $480-490/mt FOB. With the influence of the slight decline seen in Chinese iron ore prices since the beginning of the current week, the upward movement of Chinese billet export prices has given way to a sideways trend. Market sources report that no sharp decline in Chinese billet export quotations is expected in the short term as domestic billet demand in China remains at good levels with the need for billet increasing amid tight electrode supply.