CIS billet exporters have cut offer prices to Turkish re-rollers and traders to compete with local suppliers which can supply small tonnages with short lead times.
Offer prices for CIS billet have been quoted this week at $625-630 per tonne cfr Turkey for May production and delivery.
The latest reported deal was booked at $630-640 per tonne cfr in mid-April, according to Turkish market sources.
“CIS mills have lowered their export prices to $620-625 per tonne cfr Turkey. Demand for billet in the domestic market remains weak,” a source from a Turkish merchant bar producer said.
Russian and Ukrainian billet exporters have been selling this week at $600-610 per tonne fob Black Sea, unchanged from deals concluded last week.
Sales have slowed on weak demand from re-rollers and traders in the Middle East and North Africa (Mena) region.
CIS billet exporters have been struggling to secure sales from consumers in Turkey due to lacklustre demand.
Buyers prefer to take small tonnages from local suppliers which can supply billet at short lead times.
Billet has been changing hands in Turkey at $625-635 per tonne exw, depending on the location of the mill, for May rolling and shipment, Turkish market participants told Metal Bulletin.
“Re-rollers prefer to buy from domestic billet suppliers as they can deliver in a few days,” a trader in Istanbul said.