Black Sea billet levels on the rise as Turkish mills increase buying

ANKARA (Scrap Monster):  The surging scrap prices have resulted in many Turkish mills switching over to billets. This has lead to rise in billet levels during the month of April. The buoyant demand from Turkish mills is expected to keep Black Sea steel billets levels firm.

Turkish mills increasingly swapped scrap with billets as the conversion gap narrowed with sharp rise in scrap prices. The scrap prices have increased by nearly $40 to $50 per tonne during the past six weeks. The demand from mills saw the billet prices rising by $10-$15 per tonne during the month.

The CIS billet bookings by Turkish mills for May shipment were quoted at $530-$535 per tonne CFR. The domestic billet prices quoted higher, which made imports competitive. The Turkish billet prices remained in the range $540-$545 Ex-works excluding VAT.

The ongoing elections in the country have reduced billet consumption in Turkey. However, the billet demand in other countries in the region is expected to remain steady on increased demand from construction sector.