After climbing strongly in December,
CIS-origin
billet is continuing its impressive performance up to the New Year.
CIS billet export offers are currently in the $415-425/mt FOB Black Sea price range for February shipments. However, it is not possible to find $415/mt FOB Black Sea offers from big
trading firms or producers. Their offers are mostly at $420-425/mt FOB Black Sea.
CIS producers expect that there will be higher prices after the New Year.
CIS billet bookings have been heard in
Turkey's Izmir and Iskenderun regions due to the current
billet shortage in
Turkey. The Turkish rolling mills, which were able to conclude purchases at $410/mt FOB Black Sea in early December, have concluded most of their recent bookings at $420-425/mt FOB Black Sea. Furthermore, the demand for
CIS billet in
Middle East countries also seems strong.
Turkish
billet prices in the domestic market are in a range of $455-460/mt. The
billet demand in the domestic market is strong due to the relatively high
rebar prices. Therefore, Turkish producers are nor eager to export
billet. However, Turkish producers are asking above $450/mt FOB for February and late February shipments in case of
billet demand from buyers. It has even been heard that some customers in the
Middle East are ready to pay above $460/mt FOB for prompt January shipments.
The
billet market is relatively strong. The demand of the
Middle East and North African countries is very good. Currently, most customers are experiencing difficulties in obtaining
billet supplies. As a result, most rolling mills in these regions are looking for prompt shipment of cargoes. However, for the time being it appears that this is not possible from
CIS and
Turkey. This situation has enlivened the
billet market. In addition, it is not possible to find suitable prices and prompt shipment of goods from alternative markets –
India,
China or
Brazil. On the other hand, the rumors that the Chinese
billet export tax may increase and that customers in the Italian
longs market may begin purchases again may jazz up the
billet market even further.