It is observed that CIS-based billet producers have been seeking ways to keep their export prices stable compared to last week, while buyers, on the other hand, have been pushing for lower billet purchase prices, citing reduced scrap quotations.
While buyers in the southern Asia are observed to be active in the markets as they continue to make price inquiries for ex-CIS billet, they are targeting prices below the level of $450/mt CFR in the current week as compared to $460/mt CFR recorded last week. In the most recent deal concluded from the CIS region to the United Arab Emirates (UAE), an Ukrainian mill has sold billet to the UAE at $450/mt CFR, though lower billet offers from traders to the country are attracting attention. Meanwhile, SteelOrbis has been informed that buyers’ firm bids are in the range of $440-445/mt CFR. Additionally, an ex-CIS billet deal in Saudi Arabia has been concluded at $445/mt CFR.
Buyers in Algeria - the country in the North African region which is showing an interest in purchasing billet from the CIS region - believe that ex-CIS billet prices shall decrease from the range of $440-445/mt CFR recorded last week to levels below $440/mt CFR.
Demand in Turkey, another important market for CIS-based billet exporters, is still weak. CIS-based billet producers are trying to keep their price in the range of $420-424/mt FOB, while trading companies are seeking ways to maintain their prices at $425-435/mt CFR Turkey. However, it is observed that buyers’ target prices do not exceed $420/mt CFR. Meanwhile, trading companies state that they are capable of achieving better prices in other destinations and so they are not yet ready to reduce their prices to such levels for Turkey.