CIS origin billet offers to the export markets were at $880-900/mt FOB in the early days of last week. However, it was difficult to see price levels of below $900/mt FOB towards the end of the week in question, with billet offers to the export markets ranging at $900-910/mt FOB in general. The Middle East market has been considerably weak in billet purchases in recent times. Nevertheless, it is heard that the Middle East and Persian Gulf are again starting to show an uptrend in demand. On the other hand, due to the fact that long product prices have increased across Europe, CIS producers' sales activity to this region may gain momentum, in spite of the fact that the European import market saw hardly any action in the first quarter of 2008.
On the Turkish domestic side, as of today the billet price level is at $930-940/mt ex-works, excluding VAT. On the Turkish billet export side, some producers have been offering billets to the export market at up to $975/mt FOB. It is not easy to say that these offers are gaining general acceptance. However, due to the fact that the Turkish producers have started to increase long product prices again, it seems that they will insist on these billet prices; currently they are not warm in their approach to firm bids at price levels of $950/mt FOB and below.
The upward movement of CIS and Turkish billet slowed down in the early days of April due to the sluggishness in the Middle East market. However, now it seems that the rising movements in overall Europe and the strong demand level from Middle East countries such as the UAE, Kuwait and Saudi Arabia are keeping the Mediterranean and the Black Sea billet markets alive. Meanwhile, the CIS and Turkish producers are being supported by the fact that Brazilian producers are offering billets at high levels due to the strong South and North American markets.