Improved demand for CIS billet exports

Demand for CIS origin billet in the export markets has improved in the past week, though it still remains on the slack side. In line with the forecast made by SteelOrbis last week, ex-CIS billet prices have risen by a further $15/mt over the past week to $260-270/mt FOB, for March production amid the upward trend seen in prices of billet and iron ore in China. However, the rise in ex-CIS billet offers is foreseen to be short-lived with iron ore prices starting to fall today, February 25, and as buyers have found the new billet quotations in the global market to be on the unrealistic side. Meanwhile, CIS-based suppliers' billet offers to Egypt and Turkey are currently at $270-280/mt CFR and $275-280/mt CFR, respectively.