Despite the downward movement seen in the global scrap market, CIS-based billet suppliers had mostly kept their export quotations stable in July with the support of the increase recorded in domestic billet purchases and the acceleration seen in domestic rebar demand, after the $7.5/mt fall in their export quotations announced at the beginning of July. However, in the past week CIS-based billet suppliers have reflected lower scrap prices and the weakness of international demand in their export prices, reducing them by $10/mt on the lower end and by $5/mt on the upper end week on week to $500-510/mt FOB. Meanwhile, CIS-based billet suppliers’ export offers are mostly on the lower end of this price range.
Following the declines recorded in ex-CIS billet prices, offers from the CIS region to Turkey and Egypt, where demand for ex-CIS billet is still weak, have declined to $510-520/mt CFR and $520-530/mt CFR, respectively. Demand for ex-CIS billet in these two destinations is not expected to improve in the short term, considering the lower domestic rebar prices in Egypt and the sustained weakness of demand for Turkish long steel in both domestic and export markets.