At the beginning of the current week, ex-
CIS billet prices to the export markets were still at $390-410/mt FOB, the same price levels they had reached last week. However, demand for ex-
CIS billet in the international markets has declined further since the beginning of the week and is now sluggish. As a result,
CIS-based suppliers'
billet offers to the export markets started to move down in the middle of this week and are currently at $385-395/mt FOB.
Turkish steel producers usually conclude
billet purchases 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). Since Turkish mills' finished steel sales both in their domestic and export markets are weak, demand for ex-
CIS billet in
Turkey is currently at low levels. Meanwhile,
CIS-based suppliers'
billet offers to
Turkey have declined by an average of $10/mt week on week to $400-410/mt CFR.
Also, demand for locally produced and import finished steel in
Egypt - another important export market for
CIS-based
billet suppliers - has been at very low levels. Market sources state that Egyptian buyers' expectations for a further decline in ex-
CIS billet prices have strengthened, while they consider current offers from the
CIS region to be unattractive. In the current week, ex-
CIS billet offers to
Egypt have declined by an average of $12.5/mt week on week to $400/mt CFR.