In the past week billet prices have continued their downtrend, against a background of much speculation in the market. Due to decreasing wire rod, rebar and merchant bar prices in the international markets, billet buyers still held on to their expectations of a decline in billet prices.
In the 11th week of 2009, rolling mills have had difficulty in gaining a definite idea of billet prices in the Turkish domestic billet market. Although HMS I/II 70:30 scrap prices have decreased below the level of $210/mt delivered to Turkey, mills have not yet announced new billet prices due to their concerns that new price levels would not be accepted on account of the high billet costs. Thus, in the Turkish domestic billet market, the billet price of $343/mt announced on February 25 has been taken as the base price.
This week, billet offers given from the CIS are at the level of $290-300/mt FOB. The conclusion of some bookings at these levels has also been heard. Market players are now wondering whether CIS billet prices will decrease to the level of $250/mt FOB seen in the 44th week of the last year, i.e. the last week of October. It is observed that smelters and rolling mills in Turkey and in the Middle East have been moving cautiously in terms of billet purchases and have continued to purchase just to satisfy their needs, though prices are on a decreasing trend.