CIS billet offers have dried up this week, with only one made to southern Europe, Kallanish learns from market participants.

A small lot of secondary grade material was offered to Italian buyers at $470/tonne cfr, but failed to attract business, as this is the level that could possibly work for primary material, direct sale, sources claim.

Traders describe the current situation as a non-market, with sellers having no need to sell and buyers to buy. The market is expected to develop further in the next couple of weeks. The construction season is well underway, and the recent perceived slight rebound in Turkish scrap import price suggests some rebound may be due in the billet market.

With scrap establishing an even footing, and the ongoing supply-side push for higher scrap prices in Russia amid its strengthening long products market, CIS mills' price lowering ability remains restricted. This supports the argument for stabilisation rather than softening of billet export prices, sources say. Higher scrap prices in the CIS domestic markets are also pressuring some mills to halt production, as is the case with Ukraine’s Electrostal, which is still idle, they note.

Traders still place a workable CIS billet export price level at around $430-440/t fob Black Sea this week, in line with rebar and wire rod price levels.