CIS-based billet suppliers see very weak demand in target markets

During the past week, ex-CIS billet prices have moved sideways in the range of $320-335/mt FOB. Although Chinese billet export quotations have increased by an average of $35/mt during the past month, the sideways movement of ex-CIS billet prices in the same period has attracted some attention.
 
Market sources state that demand in CIS-based billet suppliers' target markets is currently at very low levels, preventing any upward trend in ex-CIS billet quotations. Meanwhile, Egyptian buyers' billet import volumes from the CIS region have remained limited due to the tightness of foreign exchange availability in Egypt which has become even tighter recently. On the other hand, Turkish buyers are still concluding import billet purchases only in line with their needs amid the ongoing political tension in the country and due to the fluctuations recorded in the Turkish lira-US dollar exchange rate.
 
In the coming period, demand for ex-CIS billet in the export markets is expected to remain weak since these abovementioned problems in CIS-based suppliers' target markets are not expected to be resolved in the short term.