Turkish domestic billet prices increase slightly

Wednesday, 22 May 2019 15:31:43 (GMT+3)   |   Istanbul

It is observed that Turkish billet producers have raised their domestic offers by $12.5/mt week on week to $440-455/mt ex-works in parallel with the rapid increases recorded in their billet export prices. Meanwhile, following the new domestic billet prices, buyers in the local Turkish billet market have adopted a cautious stance as regards new purchases as they are concerned about higher inventory costs amid increased scrap quotations and due to their expectations of lower demand given the approach of the end-of-Ramadan holiday. 

Additionally, ex-CIS billet offers to Turkey have moved up by $10/mt over the past week and are in the range of $435-445/mt CFR, for spot sales. According to market sources, Turkish buyers are still negotiating for lower ex-CIS billet offers.

The future trend of domestic billet prices in Turkey is expected to be shaped by whether international buyers decide to accept or refuse the new Turkish rebar export offers, which are now at $445-455/mt FOB. If this price range is accepted by international buyers, the Turkish mills are expected to at least maintain or even to increase their domestic billet quotations, while Turkish buyers are also voicing their concerns regarding to likelihood of an increase in the local Turkish billet market. On the other hand, if the new rebar price levels fail to gain acceptance from foreign buyers, Turkish mills may reduce their domestic billet quotations in order to persuade local buyers who are currently showing reluctance to purchase. Also, market players are watching closely to see whether Kardemir will open new billet sales in the current week.


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