The upward movement of CIS-based suppliers’ billet export prices has accelerated with the influence of the sharp rises recorded in global scrap quotations since last week. Compared to the price levels in SteelOrbis’ report published on November 30, ex-CIS billet offers have increased by an average of $30/mt to $500-510/mt FOB, though actual deals have been concluded at $5-10/mt lower than this price range.
In addition to the rising global scrap prices, the upward movement of ex-CIS billet offers is supported also by Chinese billet export quotations, which are currently at high levels.
The increases seen in import scrap and domestic billet quotations in Turkey are also making it easy for CIS-based suppliers to raise their billet offers to this destination. In the current week, it is observed that ex-CIS billet offers to Turkey have moved up by $27.5/mt week on week to $515-520/mt CFR. Having showed slightly improved demand for domestic billet, Turkish buyers are still not very enthusiastic as regards new ex-CIS billet purchases, while they prefer to conclude deals with local Turkish suppliers due to price and delivery time advantages.
Meanwhile, ex-CIS billet offers heard in Egypt this week are at $520/mt CFR, $22.5/mt higher than the price levels recorded last week. Although this new price range has not yet gained acceptance in Egypt, Egyptian buyers are still making price inquiries for ex-CIS billet.