Ex-CIS billet offers face downward pressure from buyers

Thursday, 20 June 2019 14:56:02 (GMT+3)   |   Istanbul

Due to the recent decreases recorded in global scrap prices, ex-CIS billet prices to the international markets have fallen by $2.5/mt week on week to $420-425/mt FOB.

However, market sources state that Turkish buyers expect domestic billet prices to move down against the backdrop of the decline observed in import scrap quotations in Turkey after the downtrend of ex-US scrap prices. As a result, Turkish buyers, who have adopted a cautious stance, are giving firm bids for ex-CIS billet at $420-425/mt CFR. On the other hand, in the Middle East and North Africa, buyers’ firm bids for ex-CIS billet are in the range of $440-445/mt CFR for large tonnages and August delivery to ports. It is observed that CIS-based suppliers are receiving the same firm bids from these regions at $405-410/mt FOB, excluding freight.

SteelOrbis has been informed by market sources that a sale from the CIS region to Algeria has been concluded for 20,000 mt of billet at $442/mt CFR, for late July shipment. Additionally, it has been mentioned that a CIS-based supplier has concluded a sale to the United Arab Emirates (UAE) for 30,000-50,000 mt of billet at $440/mt CFR for July shipment, but this sale so far has not been confirmed by either buyer or seller.

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