The increase observed in global finished steel and semi-finished steel prices which started with the uptrend seen in international scrap quotations towards the end of last week has also been reflected in ex-CIS billet prices. Buyers in the international markets have reacted cautiously to these increases, while the range of CIS-based billet suppliers’ price offers is observed to be widening. Some CIS-based producers are offering billet to their export markets at $425-435/mt FOB, while some offers from the CIS region to the international markets are as high as $450/mt FOB. Having concluded a billet export sale at $415/mt FOB last week, a Russian mill is offering the same product at $425-430/mt FOB this week. Another Russian producer has concluded billet sales in the current week at $420/mt FOB and $425/mt FOB, for prepayments.
After actively making price inquiries for ex-CIS billet last week, buyers in the Far East region - an important market for CIS-based billet suppliers - are observed to be quieter this week. The most recent ex-CIS billet sale to Algeria was concluded at $436/mt CFR towards the end of last week.
Currently, demand for CIS-origin billet in Turkey is at low levels. Demand in Turkey, which was already weak due to political and economic issues, has become very sluggish during Ramadan and given the approach of the end-of-Ramadan holiday which will start on June 1. While offers from the CIS region to Turkey at $440-460/mt CFR are heard in the market, Turkish mills’ domestic billet quotations are in the range of $440-455/mt ex-works. However, it is noteworthy that Turkish buyers do not have appetite for either of these offer prices ahead of the holiday period.