Export billet prices from the Commonwealth of Independent States (CIS) region declined at the beginning of the week, pressured by low prices and poor demand.
Lower import scrap prices in Turkey as well as low demand in major sales outlets due to the summer slowdown were the main reasons for the negative mood.
“[The] market seems very soft. August is a quiet month in general as well,” a Europe-based trading source told Fastmarkets.
“[The] volatile Chinese market also create[d] a bit of panic,” the source added.
Although customers in China slightly increased bids for import billet in the week due to stronger domestic rebar prices, this was not sufficient to interest CIS suppliers.
The highest bids from China were heard at $700 per tonne cfr, equivalent to $630 per tonne fob Black Sea.
Official offers from CIS mills were still $650 per tonne fob Black Sea and above.
Some market participants reported offers at $635-640 per tonne fob, but this information has not been widely confirmed in the market.
Customers from Turkey showed interest in import billet at $650 per tonne cfr, which would be equivalent to $620 per tonne fob Black Sea. The previous week bids were heard at $620-625 per tonne fob Black Sea.
This was due to lower scrap costs in the country. Import prices for steel scrap in Turkey dipped on Monday August 9 after recent bookings made by steel mills in the country came to light at the start of the reported week.
Fastmarkets’ index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was calculated at $452.72 per tonne on Monday, down from $455.81 per tonne on Friday.
Fastmarkets’ calculation of its daily steel billet index, export, fob Black Sea, CIS was $635 per tonne on Wednesday August 11, down by $7 per tonne day on day.
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