Demand for ex-CIS billet still weak, while prices move up

In the current week, demand for ex-CIS billet has increased slightly though it is still at low levels, while price inquiries have accelerated for ex-CIS billet in Egypt and Middle Eastern countries.
 
Following the end-of-Ramadan holiday, suppliers in the CIS region have increased their billet quotations in line with the upward movement of Chinese billet export prices recorded last week, raising them by $10/mt on the lower end and by $5/mt on the upper end to $320-335/mt FOB.
 
Although CIS-based suppliers have concluded billet sales to Egypt at $320-325/mt FOB in the same period, they have failed to conclude billet deals in Turkey. With billet completely losing its cost advantage against scrap, Turkish steel mills are uninterested in billet offers as they still continue to purchase import scrap. As a result, demand for ex-CIS billet in Turkey is at very low levels. However, suppliers in the CIS region are expected to continue their sales to Egypt and Middle Eastern countries since ex-China billet supply to the global market has declined significantly.