For most of last week, the rapid increases recorded in global scrap prices were not reflected in ex-CIS billet offers which, on the contrary, continued to move downwards. At the end of the last week, however, ex-CIS billet prices increased slightly, rising by $5/mt on the lower end, against the backdrop of slightly higher billet prices from Turkish mills due to their increased production costs. Currently, billet offers from the CIS region to the export markets are at $460-470/mt FOB, while traders are mostly giving offers in the upper end of this price range.
On the other hand, ex-CIS billet offers to Turkey have increased by $5/mt on the lower end over the past week to $475-480/mt CFR, while demand for ex-CIS billet in Turkey is still weak and has not provided support for the rises in prices from the CIS.
Meanwhile, demand for ex-CIS billet is weak in Egypt, which is one of the main target destinations for CIS-based exporters, while ex-CIS billet offers to Egypt are at $480-485/mt CFR. However, Egyptian buyers continue to conclude deals with Iranian suppliers and demand for ex-CIS billet in Egypt is not expected to reach desired levels in the short term amid competitive Iranian billet prices.