Market sentiment has weakened in the ex-CIS billet export market as demand has remained insufficient while import scrap tags in Turkey are on a downward track. Mills have mainly been trying to stick to $405/mt FOB Black/Azov Sea, but bids from customers have been coming at not higher than $390-395/mt FOB, SteelOrbis has learned. “Some are still at $410/mt FOB in dreams, but it seems nothing above $400/mt FOB will work today,” a CIS-based producer said.
Turkey’s bids are down to $400/mt CFR for October shipments, while prompt cargoes have been traded this week at $410-415/mt CFR Izmir. Some activity has been seen in Egypt at $417-420/mt CFR, but generally the bids are at $415/mt CFR. Algeria remains quiet amid low domestic rebar demand; buyers’ price idea is not above $420/mt CFR.
The GCC market has been quiet. Ex-CIS offers to the UAE have been reported at $440/mt CFR and slightly above, coming to $400-405/mt FOB Black/Azov Sea. However, some local re-rollers target $20/mt discounts, fearing new drops in domestic rebar prices in the Emirates for October production.
In Southeast Asia, deals were closed last week at $445/mt CFR, both from Far East and Black Sea ports. This week, however, the key Russian supplier to the region has been selling at $440/mt CFR. Moreover, taking into account the aggressive offers from India ($430-440/mt CFR), chances for the Black Sea suppliers to sell higher than $435/mt CFR are scarce.
As a result, CIS-based billet suppliers from the Black Sea can get $390-395/mt FOB for Asia in the best case, which is in line with most bids coming from the Middle East. “We will see deals below $400/mt FOB very soon. Some buyers are waiting for $380/mt FOB too, but we will see about that,” a trader told SteelOrbis.
