According to market sources, billet offers from the CIS to the export markets are currently in the range of $400-405/mt FOB. CIS market sources state that exporters have completed their transactions for January shipment and are now focusing on sales for shipments in February. Meanwhile, Russian suppliers are reluctant to give offers due to the loss of strength of the Russian ruble against the US dollar. Additionally, recently there has been tightness of coal supply in Ukraine and power shortages in the country. Therefore, some producers have cut their monthly production utilization rates and reduced their volumes offered to the export markets.
Ex-CIS billet offers to Turkey are currently in the range of $425-430/mt CFR, while ex-CIS deals have been concluded at $418-420/mt CFR Turkey over the past week. However, buyers believe that these price levels are on the high side and so they have failed to gain acceptance. Similarly, ex-CIS offers to Egypt, which are currently at $400/mt FOB, have been finding it difficult to attract buyers.