CIS-based billet suppliers see weak demand in target markets as predicted

Thursday, 25 August 2016 17:44:00 (GMT+3)   |   Istanbul
       

During the past week, ex-CIS billet prices have moved sideways in the range of $320-335/mt FOB. As SteelOrbis predicted last week, demand for ex-CIS billet in the export markets has remained slow over the past week, while due to the weak demand conditions ex-CIS billet offers have failed to move up in line with the upticks recorded in Chinese billet quotations.
 
It has been heard that an ex-CIS billet transaction was concluded last week in Turkey - one of the most important target markets of CIS-based billet exporters - at $330/mt CFR. However, Turkish buyers believe that import billet prices are not attractive enough to ensure a cost advantage compared to import scrap. As a result, their billet purchases are still limited as they prefer to conclude deals for import scrap. 
 
Market sources state that ex-CIS billet purchases in Egypt - another important market for billet exports from the CIS - have declined significantly week on week due to the ongoing tightness of foreign exchange availability in the country.
 
Additionally, market players report that billet sales from the CIS region of 50,000 mt to the United Arab Emirates (UAE) and of 100,000 mt to Saudi Arabia have been concluded in the current week at $340-345/mt CFR.

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