Following the rises recorded in global iron ore quotations, ex-CIS billet export prices have moved up by $5/mt week on week to $430-435/mt FOB. Meanwhile, market sources report that international buyers have continued to exert pressure on offers in question.
SteelOrbis has also been informed that offers in the range of $440-445/mt CFR Turkey from the CIS region can be found in the market, while CIS-based producers are trying to increase their prices to $445-450/mt CFR Turkey. On the other hand, Turkish buyers are adopting a wait-and-see stance towards the new CIS-originated billet offers for now.
New ex-CIS billet sales to Egypt have been heard after an Egyptian administrative court suspended the country’s preliminary safeguard duty on billet and rebar imports which was at 15 percent and 25 percent, respectively. SteelOrbis has also heard that the unloading of some products which have already arrived at Egyptian ports has been delayed by the wait for the necessary official documents.
According to market sources, CIS-based billet suppliers may focus more on MENA (Middle East and North Africa) countries and the Far East region due to the downward pressure exerted on prices by Turkish buyers and also due to Turkish buyers’ reluctance to conclude new purchases. In the current week, billet suppliers in the Gulf region have offered very aggressive prices to the international markets, even concluding some deals, and so CIS-based producers will compete with the Gulf-based mills as well as with Turkish mills in the coming period, market sources report.