The Black Sea steel billet market remained strong Wednesday with a fresh booking confirmed 

into Egypt at higher levels with tightening prompt availability. 

An Egyptian re-roller bought 5,000 mt of Ukrainian billet at $432/mt CFR, equating  to around 

$417/mt FOB. 

This was confirmed with a source close to the deal. 

A London-based trader said the Egyptian market -- which has imposed import tariffs on rebar 

from Turkey, China and Ukraine -- was hot. 

"Construction [is] picking up everywhere and [the] government is pumping in money like crazy 

in  housing  and  infrastructure,"  he said,  suggesting  most  mills  had   upped   rebar  prices 

domestically and could not find enough billet to roll. 

"Premiums  are paid  for prompt shipment or material at the port already, so $435/mt CFR will 

be achieved very soon," he said. 

Egypt's  central bank announced its international reserves reached $31.3 billion at the end of 

June,  according  to  provisional  figures,  after  they  hit  their  highest  level  since  the  2011 

revolution last month. 

One Dubai-based   trader   said  he offered  at $435/mt CFR into  Egypt  but  his buyers were 

not ready to pay this yet, although he deemed $430/mt CFR as tradeable. 

He estimated CIS billet prices workable in the $410-$415/mt FOB range. 

Another   Dubai-based   trader  concurred ,   suggesting    $410-$415/mt  FOB   represented 

tradeable value Wednesday. 

But he said  bids  were lagging behind,  with his clients  targeting $415/mt CFR Turkey, some 

way below offer levels of $415-$420/mt FOB. 

Turkish  mills  still appeared  to prefer scrap,  with  recent  deals for premium US East Coast 

material done at $296/mt CFR and $298/mt CFR for heavy melting scrap I/II (80:20) basis. 

A Switzerland-based trader said $420/mt FOB was the market level for billet, with one CIS mill 

opening a tender at $410/mt FOB with prepayment. 

There  has  been  talk  in  recent  days  of  a  Turkish  mill  paying $435/mt CFR for a prompt 

shipment of Ukrainian billet, but this could not be confirmed.