Proposals for procurement in the CIS

Bids for procurement in the CIS at $ 445-450 per tonne with fob in the Black Sea remain too high for buyers, leading to a noticeable lack of activity, which is further emphasized by the end of the month and the lull in Ramadan.

The increase was triggered by Washington's surprise mid-month move to cut the Section 232 duty on Turkish steel from 50% to 25% and remove Canadian and Mexican duties. At the same time, if not preceded by this, the growth of orders for scrap metal and export prices for rebar in the Turkish market inspired CIS producers to increase their offers as well.

One sale to Tunisia of a medium-sized lot at an equivalent price of about $ 426-430 /t on the Black Sea was sold earlier this week, but other inquiries remained open at roughly this level. Tunisian buyers will be willing to negotiate billets in the CIS at $ 450-455 /t, as in Egypt, while Turkish buyers are directing $ 440 /t to the factories.

Some factories in the CIS may be open for purchases at $ 440 /t with firm bids, traders said, but other large integrated factories are awaiting the return of Asian buyers after Ramadan and are keeping the supply stable. Post-Ramadan buyers are likely to bring a spike in new orders as mills stand ready to negotiate downside, traders note. Recent orders in Southeast Asia for Russian materials at $ 460-465 per tonne from the Russian Far East continue to go up to $ 420-425 per tonne for very large orders.