CIS-based billet suppliers have increased their export prices by $10/mt during the past week to $420-430/mt FOB amid the ongoing strength of demand for ex-CIS billet from Egypt and also due to the $10/mt rise seen in the Chinese billet market. With Chinese and Turkish billet export prices respectively at $460-470/mt FOB and $445-450/mt FOB, CIS-based billet suppliers may increase their export quotations further in the coming days.
In Egypt, buyers’ price inquiries for ex-CIS billet have continued without slowing down, with purchases continuing consistently. As a result, CIS-based billet suppliers have increased their offers to Egypt by $5/mt week on week to $430-440/mt CFR. In the current week, Egyptian buyers have mostly concluded transactions for ex-CIS billet in the range of $430-435/mt CFR. On the other hand, market sources report that suppliers in the CIS region are aiming to conclude their future billet sales to Egypt at the minimum price level of $440/mt CFR.
Meanwhile, it is observed that ex-CIS billet offers to Turkey have moved up by an average of $10/mt during the past week to $435-440/mt CFR. Turkish liquid steel producers still prefer to purchase import scrap with many deals concluded in the past seven days, as it is more advantageous in terms of costs compared to imported billet. As a result, their demand for ex-CIS billet has not improved. On the other hand, Turkish mills which usually import billet within the scope of Turkey’s inward processing regime (under this scheme mills have to give a commitment to export the finished products they produce from imported billet) are finding it difficult to see a clear picture of the future trend in their finished steel export markets, and so at present they mostly prefer to work with domestic billet suppliers whose delivery times are shorter.