Having reduced their offers by $10/mt last week, CIS-based billet exporters have once again revised their offers downwards by $10/mt on the lower end and by $5/mt on the upper end week on week to stimulate their sales. CIS-based billet suppliers’ export offers are currently at $500-515/mt FOB, though actual sales are observed to be closed with $5-10/mt discounts on this price range.
Chinese billet export prices are now at $530-550/mt FOB, while these high levels of Chinese offers have led Far Eastern buyers to consider ex-CIS billet more attractive. In the current week, a Russian producer has concluded a sale to the Far East for 30,000 mt of billet at $505/mt FOB. Additionally, SteelOrbis has been informed that Far Eastern buyers are ready to purchase import billets in the range of $505-510/mt FOB.
On the other hand, demand for ex-CIS billet in Turkey and Egypt is at low levels. Although ex-CIS billet prices have gained acceptance from Far Eastern buyers, they are considered to be on the high side in Turkey and Egypt. After the revision made by CIS-based billet exporters, ex-CIS billet offers to Turkey and Egypt have declined to $515-520/mt CFR and $530/mt CFR, respectively. In both countries the impact of Ramadan is still felt, while demand in Turkish long steel mills’ domestic and export markets is weak. As a result, billet purchases in Turkey are currently limited.