Abundant supplies lead to lower ex-CIS billet export offers

Due to weak finished steel demand and suspended activity in raw material markets, ex-CIS steel billet offers have softened.
 
Last week, there was no demand for the few ex-CIS 3SP-5SP billet offers available in the market, which were standing at $605-615/mt FOB, as buyers continues to wait. Coming to this week, with price declines observed, the number of offers has increased.
 
The most recent ex-CIS steel billet offers heard from traders to Turkey were standing at $600/mt CFR Istanbul for 3,000 mt of 3SP steel billet, at $590/mt CFR Istanbul for 8,000 mt of 5SP steel billet and at $603/mt CFR Bartin for 6,000 mt of 5SP steel billet. In the meantime, it is heard that some CIS producers are offering steel billet to Turkey at $580-600/mt CFR Istanbul. However, no transaction has been reported so far at this price level.
 
Buyers are expecting ex-CIS steel billet prices to further decrease in the short term, with the sluggish market situation and abundant steel billet market supplies being indicated as the reasons for this expectation. Some CIS producers have shifted from flat steel production to steel billet production and this has resulted in even greater supplies of billet, which suppliers are seeking to sell in a context of low demand. The imbalance between supply and demand, coupled with the weakening of the euro against the US dollar, has pushed down ex-CIS steel billet offers to $565-575/mt FOB. It is thought that this price range may gain acceptance in the market.