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| Square Billet |
Turkish mills turn to imports as regional billet markets show mixed pricing trends and weak trade activity
Minor Price Drops Reflect Tepid Global Billet Demand
Square billet prices declined by up to $10 per ton in May, with most markets reporting subdued export demand. Mid-month gains of $5/t in some regions were short-lived, as prices by late May returned to early-month levels. Overall, global billet markets maintained relative price stability, but low trade volumes and buyer caution dominated sentiment.
Turkish Mills Shift to Imported Billets for Cost Advantage
In the Black Sea FOB market, prices held steady in the $433–437/t range, making it attractive for Turkish rolling mills seeking cheaper input alternatives. Domestic Turkish billet prices, such as those from Kardemir, are quoted at $500–510/t, while Chinese billet offers landed at Turkey (CFR) stand at $460–465/t. As a result, Turkish producers are increasingly reliant on imported billets, pressuring domestic mills to adjust pricing strategies.
Regional Trends Show Diverging Price Patterns
In Tangshan, China, billet prices remained relatively flat between $405–407/t, despite a brief rise to $411/t mid-May. Producers in China are now favoring the production of finished long products over billet exports. Meanwhile, Saudi Arabia’s billet prices fell from $523/t to $501/t as the market slowed in anticipation of Eid al-Adha (June 6–10). In Italy, square billet prices dropped marginally by $4/t to $557/t Ex-Works, reflecting high domestic electricity costs that continue to weigh on steel production margins.
ScrapInsight Editorial View:
The May billet market illustrates the growing tension between input costs and buyer price resistance. Turkey’s pivot to lower-priced imports is a key signal that cost competitiveness is outweighing regional loyalty. Looking ahead, holiday-related slowdowns and China’s internal production shifts may intensify volatility in June. Traders should closely monitor regional demand signals and utility cost pressures, particularly in Europe and the Middle East, for short-term pricing cues.
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