It is observed that billet offers from the CIS region to the international markets have increased by $40/mt over the past week and are now at $485-505/mt FOB. Market sources report that the rise seen in ex-CIS billet quotations has been based on the ongoing strength of Chinese billet export prices, the upward movement of global scrap quotations and also on the higher demand for billet received from electric arc furnace-based producers due to the tightness of electrode supply.
As Turkish billet buyers have occasionally experienced problems in terms of procuring domestic billet, the prices recorded in ex-CIS billet deals in Turkey have increased from $465-470/mt CFR to $500-510/mt CFR during the past week. Higher import billet prices have gained acceptance in Turkey amid the ongoing uptrend of import scrap quotations and also due to lower domestic billet supply. Nevertheless, Turkish buyers are currently not so eager to restock as they consider the current price levels to be on the high side.
CIS-based suppliers’ billet offers to Egypt, where demand for ex-CIS billet has been lively for a long time now, are currently at $500-525/mt CFR, $40/mt higher than the price levels recorded last week. Market sources state that Egyptian buyers are continuing to purchase billet from the CIS at this price range.