After witnessing slow transaction activity last week and early this week, the CIS steel billet market started to show signs of a revival by the middle of the current week, with a slight increase in steel billet demand from some Middle Eastern countries, particularly from Iran.
Early this week, steel billet export offers from CIS producers were standing at $620-630/mt FOB. However, by the middle of the week, following steel billet demand from the Iranian, Lebanese and Syrian markets, the CIS steelmakers have started to abstain from announcing prices for their April production. Market sources assess the steel billet demand at prices of $620-625/mt FOB coming from these Middle Eastern markets as a positive signal.
In this week's Iranian steel market, steel billet demand has shown some improvement and it is reported that some Iranian stockists have returned again to the steel billet market for purchases, mainly from CIS suppliers. Steel billet offers given to the Iranian market for Russian origin steel billet are currently standing at $630-650/mt CFR. Some major CIS billet producers have continued to give offers for their March production, which is almost fully booked now, and these producers do not seem in a hurry to start issuing prices for their April production.
Beginning from last week Turkish mills have restarted scrap bookings and this week their steel billet export offers have increased by approximately $10/mt week on week to $640-645/mt FOB. Some Turkish billet producers have not allotted any material for the domestic market, while some others have increased their local prices. In the meantime, the CIS origin steel billet offers given via traders to the Turkish market have increased by $10-15/mt over the previous week, reaching $640-645/mt CFR.