Import billet prices are expected to go down further this week with some sources believing that the $500/mt CFR mark could be broken.
Some rumors have emerged early this week that in addition to prompt shipment deals for 12,000 mt at $508-510/mt CFR, contracts for small volumes for August shipment, most probably for ex-Donbass billet, have been closed at $503-505/mt CFR. Though these deals have not been confirmed by the time of publication, most market sources agree that this level is the real market price for now, and a few mills have stepped back, having previous bids at $500/mt CFR late last week. “I would say that the market price was already at $500-510/mt CFR last week,” a Turkish mill said.
“And forecasts for this week are not good at all. We expect prices for Russian billet could go below $500/mt CFR,” a trader said.
Despite the fact the sentiments in the Asian market have worsened as well, prices for Asian origins have been still not below $530/mt CFR and for duty free origins like Malaysia they are still much above this level, being not in a focus of Turkish importers. Moreover, as local rebar prices have dropped to $600/mt ex-works and even below form some mills, the pressure on billet prices may continue.
The SteelOrbis reference price for imported billet in Turkey has been corrected down slightly more – to $500-530/mt CFR from $505-530/mt CFR on Friday.