It is observed that ex-CIS billet offers have continued their downtrend in the current week. With Far Eastern buyers focusing on development in the China-US negotiations this week, their demand for billet has decreased.
SteelOrbis has been informed that a buyer in Algeria has purchased Ukrainian billet at $440-445/mt CFR. Although ex-CIS billet offers to the United Arab Emirates (UAE) at $460/mt CFR have been heard in the market, buyers are reportedly unwilling to conclude purchases at price levels above $450/mt CFR.
The overall weakness of demand has increased the downward pressure on prices, while CIS-based billet suppliers have reduced their export offers as they are adopting a more aggressive price policy. Having sought ways to maintain their prices in the range of $425-430/mt FOB last week, CIS-based suppliers’ billet export prices are at $420-425/mt FOB and at even lower levels in the current week.
Increased political tensions in Turkey - an important market for CIS-based billet exporters - and also the depreciation of the Turkish lira have prevented billet demand in the country from improving. There are several ex-CIS billet offers to Turkey at $410/mt FOB. Although spot sales by trading companies to Turkey at $435/mt CFR have been heard, the price levels are generally in the range of $425-435/mt CFR. However, SteelOrbis has been informed that levels at $420-425/mt CFR are also heard in the market. Experiencing difficult times in their finished steel sales, Turkish mills’ demand for billet is at low levels as they seek to exert pressure on prices.