Demand for ex-CIS billet has declined further during the past week as buyers have postponed their purchases of billet from the CIS region in the last week of the year. CIS-based suppliers' billet offers to the export markets have declined by $10/mt since the beginning of the current week to $390-400/mt FOB amid the weakness of demand and due to the $25/mt fall recorded in Chinese billet export quotations over the past seven days.
During the period in question, ex-CIS billet offers to Turkey have moved down by an average of $5/mt to $405-415/mt CFR. However, Turkish steel producers' demand for ex-CIS billet has remained at low levels since they are unable to predict the future trend in the finished steel export markets and so are unwilling to conclude billet purchases within the scope of Turkey's inward processing regime (under this scheme mills have to give a commitment to export the finished products they produce from imported billet).
Meanwhile, CIS-based billet suppliers have also reduced their offers to Egypt - another target market for ex-CIS billet exports - by $5/mt week on week to $410/mt CFR. Additionally, demand from Egyptian buyers for ex-CIS billet has remained weak as they have high billet inventories at the end of the year.