During the past week, CIS-based suppliers billet export prices have moved down by an average of $7.5/mt to $480-500/mt FOB. In the meantime, billet sales from the CIS region to Turkey and Egypt - CIS-based billet suppliers’ main export markets - have been heard but market sources state that demand for ex-CIS billet in these countries is still at low levels.
It is observed that ex-CIS billet offers to Turkey have declined to $495-510/mt CFR over the past week, while it was heard that an ex-CIS billet deal in Turkey was concluded in the same period at $485-490/mt CFR. However, Turkish buyers, who usually import billet 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), are in no rush to make new purchases, while they are only concluding ex-CIS billet deals when they obtain an advantage in terms of price.
On the other hand, ex-CIS billet offers to Egypt are reported to be at $490-520/mt CFR and buyers are concluding new ex-CIS billet transactions only in line with their needs.