During the past week, CIS-based billet suppliers have increased their export prices by an average of $10/mt to $435-445/mt FOB.
Market sources report that demand for ex-CIS billet is at good levels in CIS-based suppliers’ main export markets. Billet demand of electric arc furnace (EAF)-based producers has increased due to the declines recorded in global electrode supply and demand for ex-CIS billet in Egypt is still lively amid the ongoing construction and infrastructure projects in the country. Also, the rises seen in global scrap prices have contributed to the upward movement of ex-CIS billet quotations.
Market sources state that CIS-based suppliers billet offers to Egypt have increased by an average of $10/mt week on week to $450-460/mt CFR, though it is observed that deals in Egypt for billet from the CIS region have mostly been concluded at $445-450/mt CFR. Egyptian buyers are expected to accept the rises in ex-CIS billet offers and continue their purchases given the increasing finished steel quotations in their domestic market.
On the other hand, CIS-based suppliers billet offers to Turkey have increased by $10/mt on the lower end and by $15/mt on the upper end to $450-460/mt CFR. Turkish billet buyers are seen to be continuing their price inquiries for ex-CIS billet as billet supply in their domestic market is at low levels. Additionally, a sale from the CIS region to Turkey’s Iskenderun region was concluded towards the end of last week at $452/mt CFR. Under these circumstances, Turkish billet buyers are expected to accelerate their ex-CIS billet demand in the coming days.