Demand for ex-CIS billet in the export markets has remained at low levels this week, while export offers for billet from the CIS have declined by $35/mt on the lower end and by $40/mt on the upper end during the past week to $390-410/mt FOB. CIS-based billet suppliers have been forced to reduce their export quotations due to downward pressure from buyers, following the declines recorded in Chinese billet export prices which had fallen by a total of $95/mt in the week up to yesterday, May 11. Although, two CIS-based steel producers have insisted on keeping their billet quotations unchanged in the range of $415-435/mt FOB, SteelOrbis has been informed that no new deal has been concluded in this price range which is considered to be unrealistic by buyers.
Despite the increases seen in Chinese billet export offers today, May 12, CIS-based billet suppliers' export offers are still $65/mt higher than offers from their Chinese competitors. Accordingly, it is believed that billet offers from the CIS region to the export markets may fall further in the coming period.
Meanwhile, CIS-based suppliers' billet offers to Turkey and Egypt are currently in the range of $410-435/mt CFR and $410-420/mt CFR, respectively.