Steel billet markets await demand revival

Due to weak semi-finished and finished steel demand in the Middle East and North Africa, activity in the steel billet market has remained limited while prices are still trending flat.
 
The steel billet demand in Iran has slowed down due to the Iranian New Year holiday. However, demand is expected to revive once the Iranian market returns from the holiday. In the meantime, it is reported that Russian steel billet producers have continued their transactions to the Iranian market. While Russian mills' mainstream steel billet export offers stand at $610-630/mt FOB, the latest steel billet transactions of these producers to the Iranian market have been at $635-640/mt CFR.
 
After filling their order books for their April production, the Turkish steel billet producers are now offering their May production to the export markets at $635-645/mt FOB. Due to the steel billet supply shortage in the Turkish domestic market, as well as ongoing difficulties in finished steel sales, Turkish rolling mills are not active in steel billet bookings. This week, steel billet import offers given to the Turkish market have been at $635-640/mt CFR; however, rolling mills are not showing interest in these offers.
 
Although steel billet demand in CIS suppliers' key export markets has declined, thanks to the anticipation of a demand revival in Iran no significant price decline is foreseen at the moment. On the other hand, the future price trend in the scrap market is expected to be decisive for new steel billet offers.