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CIS billet export prices move sideways, buyers wait



Global Steel & Raw Materials

June 1, 2017 -- By staff





CIS billet export prices have been moving sideways in the week ending June 2 on the back of stable offers for July from mills and a mostly wait-and-see mood among buyers, market participants told S&P Global Platts.


The first week of Ramadan in many key end-markets including Egypt and Turkey is partially explaining the lackluster demand for CIS-origin billet.


In other North African markets, European mills were still undercutting their CIS competitors as one trader reported a south EU offer pegged at €350/mt ($393) FOB.


At the same time – with the exception of one Ukrainian producer which was said to have dropped its offer to $390/mt FOB Mariupol from $395/mt FOB – ex-CIS offers remained unchanged from the week ended May 26, hovering around $400/mt FOB Black Sea.


“If other [lower] prices are heard, these are from the trader that may have cargo to sell and does not know where to sell it to except Turkey which is the worst paying market today,” a trader commented.


In Turkey, comparatively low scrap prices and persistently weak rebar exports are playing against billet imports from the CIS, sources concluded.


“CIS first asked $420/mt CFR Iskenderun (approximately $400/mt FOB) for June production. Then they started to ask firm bids from buyers but actually there is no interest for import material because of extremely quiet export markets,” a re- roller in Turkey commented.


The company believed the range $410-415/mt CFR Iskenderun ($390-395) was attainable but even that was not tempting.


Platts kept its assessment at $395/mt FOB Black Sea on May 31, stable on day.


Platts analyzes other steel and scrap products in this feature:


Iron ore | Scrap | HRC | Rebar | Semi-finished | News


Next commentary: US demand supports Turkish rebar exports in April






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