Although CIS-based billet suppliers are trying to keep their export prices stable, buyers are observed to be exerting pressure on their quotations.
The most recent billet sales from the CIS region to Algeria at $440/mt FOB have pushed down international buyers’ price expectations. In the current week, ex-CIS billet offers are mostly observed to be at $440-445/mt FOB. However, some large CIS-based mills have refused to reduce their billet export offers and are trying to keep them in the range of $450-455/mt FOB. It is observed that there is still billet demand in Southeast Asia and the United Arab Emirates (UAE), very low-priced Iranian billet offers in these destinations are exerting downward pressure on CIS-based suppliers’ prices.
Demand for billet in Turkey, an important export market for CIS-based billet suppliers, is at very low levels. Turkish producers are considering the billet prices to be very high, stating that they are not currently purchasing but that if they were to restart their purchases they believe they could conclude deals at far lower price levels. Meanwhile, Egypt’s safeguard duty investigation on steel billet and rebar imports has caused a slowdown in demand from Egyptian buyers.