The resumption of purchases by Egyptian consumers has brought optimism to the market and there has been a significant increase in billet prices, especially with the stable growth rates of raw materials in recent days.
The rise in purchase prices of semi-finished products in Egypt and the rise in scrap have caused semi-finished exporters to increase their offers above the $620 FOB level.
Current indicators in the Black Sea ports do not go below the $620-625 FOB range, with some lots being announced above the $630 FOB level.
Over the past week, bids have increased by at least $15-20. This was made possible after approval for large volume purchases in the Egyptian market above $660-665 CIF. At the same time, an additional positive factor is the increase in scrap offers at Turkish ports, where updated contracts confirm the purchase of February lots of HMS 1&2 at no less than $470 CIF. Therefore, billet may continue to show a consistent increase in export offers. However, similar to the one recorded in Egypt in the first half of January, all markets do not show such an upward trend.
According to some data, most longs producers in the Persian Gulf countries continue to offer products no higher than $625-630 EXW for the domestic market. Also, high competition among importers continues in many countries and Iranian suppliers are still ready to approve February contracts not exceeding $590 CIF (Gulf ports). At the same time, Indian producers remain competitive in their bids, bidding at $640-645 CIF. Therefore, export indicators in Black Sea ports are expected to rise above $625 FOB level.
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