CIS and Turkish mills cut billet offers as weak euro favors European suppliers

After following a sideways trend in previous weeks, steel billet export offers from CIS and Turkish mills have been corrected downwards this week, with the euro/dollar exchange rate declining even below the 1.35 level. Besides, the uncertainty still surrounding the global economy has also been influential in this price decline, pulling down steel billet demand.
 
 After a flat trend at $695-705/mt $695-705/mt FOB for four consecutive weeks, Turkish mills' steel billet export offers have decreased by $10/mt this week, declining to $685-695/mt FOB on actual weight basis, for October shipments. The main reason behind the price decline is indicated as European suppliers' lower steel billet offers, with the help of low euro/dollar exchange rate. In the meantime, steel billet prices in the Turkish domestic market have been maintained at $690-700/mt + VAT ex-works on actual weight basis. However, since buyers find these offers high, demand is not lively in the local market.
 
In fact, the first move against European steel billet suppliers' more competitive offers came from the CIS producers. These producers have reduced their 3SP-5SP steel billet export offers by $5-10/mt week on week to $670-680/mt FOB, for October shipments. In the meantime, some traders' steel billet offers to the Turkish market have declined lately to $680/mt CFR on actual weight basis.
 
While steel billet supplies in southern Europe have remained on the short side, southern European mills' steel billet export offers stand at the price range of €495-500/mt ($668-675/mt) FOB. Some transactions have been concluded at this price range, though not large in terms of tonnage.