Ex-CIS billet quotations continue to move up with support of scrap prices

Billet export prices from the CIS region have continued to move up during the past week with the support of the rises seen in scrap prices since the beginning of February. After last week's $5/mt increase recorded in ex-CIS billet offers, CIS-based suppliers' billet export offers have increased by another $20/mt in the current week, on FOB basis. Buyers consider current ex-CIS billet offers at $380-400/mt FOB to be on the high side and, although demand for ex-CIS billet in the export markets has revived slightly over the past week, it is still weak.
 
In the current week, ex-CIS billet offers to Turkey are at $395-415/mt CFR, indicating a $15/mt rise since last week. Meanwhile, it is observed that Turkish billet buyers prefer to purchase domestically produced billet due to its favorable price, while Turkish steel mills are purchasing import scrap instead of import billet given the resulting advantage of lower production costs. Under these circumstances, demand for ex-CIS billet in Turkey is still at low levels.
 
Currently, ex-CIS billet prices in Egypt are at $400/mt CFR, $15/mt higher than the price levels recorded last week. Also, market sources state that an Egyptian buyer has concluded an ex-CIS billet deal at this price level, while demand for ex-CIS billet in Egypt has increased slightly over the past week.