Algerian Qatari Steel (AQS), one of the largest steel producers in Algeria, announced a new billet tender last Friday, November 6. The company is in the market to buy 20,000 mt of billet for rebar production and 10,000 mt of SAE1006 grade, SteelOrbis has learned. According to the sources, AQS is seeking to buy for January shipments and to pay close to $440/mt CFR on average at the highest.
The additional demand could have supported billet suppliers in theory, but in reality the large CIS-based producers have been aiming to sell at $420-425/mt FOB and the workable level is not expected to be far below $420/mt FOB under the current market circumstances. “Scrap is firm and China seems positive for now in terms of billet prices,” a source told SteelOrbis. In addition, at present not many mills can provide sizeable billet lots for January shipments.
