Billet prices in the local Turkish market have this week continued their rising movement. Billets in this country were offered from the early days of the week to Thursday, January 8, at price levels of $410-430/mt ex-works, excluding VAT. As of today, Friday, January 9, billet prices have increased to $425-450/mt ex-works excluding VAT. The increased billet prices are causing merchant bar and rebar prices to go up. Considering the scrap prices which are close to $300/mt CFR Turkey, and also considering the possibility of scrap deals in the near future at the same levels, it seems that billet prices will inevitably see a further rise. However, some rolling mills in Turkey cannot buy billets as billet and finished steel products prices are currently so close in the local Turkish market. It even seems to make more sense to buy rebars instead of billets in some regions in Turkey due to the fluctuations seen in prices.
No billet offers from the CIS have this week been heard due to the ongoing holiday, while it is expected that CIS origin billet offers will likely be at the range of $410-430/mt FOB CIS after the region returns from its holidays on Monday, January 12.