Non performance of billet shipment problem in Thai market
SteelOrbis understands a Swiss based trader has failed to perform shipment of about 60'000 mts of billets from Ukraine, to be delivered to certain Thai rolling mills. As Thai mills have been working on low inventory levels, aforementioned non-delivery created shortage of billets in the market. Rolling mills that needed to secure material for rolling into reinforcing bars in order to be able to perform their sales obligations, started to look for immediate substitute cargoes. It is reported that prices have shown a quick jump as a consequence and contracts for commercial grade CIS origin billets have been concluded at close to $290/mt CFR LO level.