It is observed that billet offers from the CIS region to the export markets have increased by $15/mt during the past week to $450-460/mt FOB.
Amid continuing demand from Egypt, CIS-based suppliers have increased their offers to this destination by $17.5/mt over the past week. As a result, ex-CIS billet offers to Egypt have reached $470-475/mt CFR. Additionally, Egyptian buyers have accepted this new price range and have continued their purchases of ex-CIS billet due to ongoing infrastructure and construction projects.
In addition to the demand received from Egypt, the ongoing strength of Chinese billet export prices and the uptrend of global scrap quotations have contributed to the rapid rise seen in ex-CIS billet prices.
Billet offers from the CIS region to Turkey are currently at $465-475/mt CFR, indicating a $15/mt increase week on week. It is observed that Turkish liquid steel producers still prefer scrap instead of billet due to more attractive prices for the former, while many import scrap deals in Turkey have been heard since the beginning of the current week. On the other hand, having slowed down their price inquiries for ex-CIS billet following the rapid rises seen in prices, Turkish billet buyers are now maintaining a cautious stance toward ex-CIS billet. Despite tight supply of billet in the local Turkish market, buyers prefer to work with local suppliers whenever they get the chance, while market sources report that domestic billet deals in Turkey have been concluded at $470/mt ex-works this week.