Ex-CIS billet export prices continue their rising trend

During the past week, ex-CIS billet prices have increased by $20/mt to $400-420/mt FOB amid the slower but ongoing rises in scrap prices and also due to the $27.5/mt increase recorded in Chinese billet export quotations. Some CIS-based billet suppliers prefer not to give new offers as they believe the upward movement of global billet quotations will continue. Meanwhile, buyers in CIS-based suppliers' target markets are concluding billet deals only in line with their needs and so demand for ex-CIS billet in the export markets is still weak.
 
Following the rises in ex-CIS billet offers, it is observed that CIS-based suppliers' billet offers to Turkey and Egypt have also moved up by $20/mt week on week to $415-435/mt CFR and $420-425/mt CFR, respectively.
 
On the other hand, Turkish finished steel producers still consider billet prices to be on the high side and continue to prefer to buy import scrap instead of import billet due to its advantage in terms of lower production costs. As a result, demand in Turkey for billet from the CIS region has remained at low levels over the past week. Meanwhile, market sources state that a CIS-based billet producer has concluded a deal to North Africa at $400/mt FOB.