Demand still weak for CIS billet exports

Demand for CIS origin billet in the export markets has remained at low levels during the past week. Due to the declines seen in global scrap prices, CIS billet export offers have declined by $5/mt week on week to $245-255/mt FOB, for March production. Buyers have continued to exert pressure on ex-CIS billet offers in the given period amid slack activity in the finished steel markets. After the decreases seen in import scrap prices in Turkey, an important market for ex-CIS billet, and following the scrap deals concluded last week in the country, Turkish buyers are in no rush to conclude new billet bookings. Although demand has been at decent levels in Egypt, another target market for ex-CIS billet, buyers' purchases of import billet have been sluggish amid ongoing difficulties experienced with letters of credit and due to the scarcity of foreign currency reserves. On the other hand, buyers in Gulf countries are postponing their import billet bookings in expectation of a further decline in Chinese billet offers after the Chinese New Year holiday.