During the past week, global scrap prices have continued their upward trend, while foreign buyers have started to expect a further rise in billet prices, which usually move up in line with global scrap quotations. Accordingly, the acceptance rate of ex-CIS billet offers in the international markets has increased. It is seen that ex-CIS billet export prices have increased by an average of $10/mt week on week to $470-480/mt FOB. The export offer prices of Chinese billet suppliers - who have not adopted an aggressive price policy in the global market - are at high levels, providing a certain degree of support for CIS-based suppliers' billet prices.
Ex-CIS billet offers to Turkey have increased by $10/mt on the lower end and by $15/mt on the upper end week on week to $485-495/mt CFR. Despite the increases recorded in domestic billet prices in Turkey seen following the rises in productions costs, demand for ex-CIS billet in the country is still weak. Turkish steel producers are continuing their long-standing policy of using scrap instead of billet in their finished steel production due to cost advantages. On the other hand, Turkish long steel exporters have not received demand from their traditional markets - where they used to sell large tonnages - for a long time now, and so importation of ex-CIS 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) has lost its charm.
Meanwhile, ex-CIS billet offers to Egypt are currently in the range of $490-505/mt CFR, while sales from the CIS region to the Northern African destination have been concluded at the lower end of this price range. In addition to these deals, price inquiries for ex-CIS billet in Egypt have accelerated slightly. But since billet imports from Iran have increased recently in Egypt, Egyptian demand for ex-CIS billet has failed to reach its previous levels recorded in the summer of the current year.