Ex-CIS billet prices receive further boost

The upward movement of ex-CIS billet prices has received support both from the rises seen in global scrap quotations since the beginning of October and from the uptrend recorded in Chinese billet export prices as of the beginning of the current week. Ex-CIS billet offers to the export markets are currently at $320-330/mt FOB, increasing by $12.5/mt since the beginning of October and rising by $4/mt week on week.
 
Import scrap prices in Turkey have moved up since the start of October, while import and domestic billet quotations in the country have increased in the same period, in line with the rises recorded in finished steel quotations. Although both import scrap and import billet prices in Turkey have moved up, Turkish mills consider that steel production using import scrap is still more attractive than billet-based production and so they prefer to purchase scrap instead of billet. Accordingly, demand for ex-CIS billet in Turkey is still at low levels, while billet offers from the CIS region to Turkey have been in the range of $330-340/mt CFR this week.
 
Meanwhile, CIS-based suppliers' billet offers to Egypt have increased by $7.5/mt week on week to $350/mt CFR, as demand for ex-CIS billet is still at medium levels in Egypt.
 
Market sources believe that CIS-based suppliers may raise their billet offers slightly due to expectations of further increases in raw material prices and Chinese billet export quotations.