CIS billet prices move down due to diversion of Egypt-bound cargoes

Billet cargoes previously booked to Egypt are being diverted to other alternative receivers due to the political turmoil in this country and elsewhere in the region. As a result of the diversion of these cargoes, offers from traders in a wide range of price levels have appeared in the market for CIS origin billets.
 
With the Egypt-bound cargoes being diverted to Turkey, one of the closest destinations in the region, offers as low as $600-610/mt FOB have become available from traders, while offers from producers have remained unclear this week. With buyers withdrawing from the market and lower offer levels becoming available, producers prefer to remain silent for the time being.
 
In the Turkish market, producers’ offers have softened to some extent this week too, following their last export bookings to Africa. The softening in raw material prices along with the drop in CIS origin billet prices appearing in the market have led Turkish producers to reduce their offer levels to $650/mt FOB. From the start of the current week, various price levels have been heard for import billet offers in the Turkish market, with prices in the range of $615-640/mt CFR.
 
In order to see clear price levels in the billet markets, the cargoes which have become available due to the force majeure situation in Egypt will first have to be digested and the holidays in the Far East will need to conclude.