The upward trend in the scrap market in Taiwan has supported the situation in the billet segment. Taiwanese buyers have accepted some higher prices for Russian billets in deals signed in line with the levels targeted by sellers in late January, but up by $5-13/mt from the previous contracts.
Billet from Russia’s Far East region has been sold to Taiwan at $448/mt CFR this week and some tonnage changed hands a little earlier at $445/mt CFR, according to market sources. Before the Chinese New Year holiday, Russian suppliers had announced billet offers at $440-450/mt CFR to Taiwan, up from the previous deals done at $435/mt CFR to this destination. So, by the end of this week, they have managed to achieve the targeted level and will try to push prices above $450/mt CFR next week, sources believe.
“Buyers are accepting the increase in billets because US scrap went up in Taiwan to around $300/mt CFR, from the low point of $275-280/mt CFR,” a trader commented.
In addition, 20,000 mt of 3SP Russian billet are heard to have been sold to Thailand at $445/mt CFR lately, up by $5/mt from the deal done to this destination in the second half of January.
Though Russian suppliers have managed to increase prices, they are the most competitive in Asia. The latest offers for Chinese 3SP billet have been at $460/mt CFR to Taiwan and Thailand. “Some traders may agree to lower prices, but they don’t want to, waiting for the trend [in China] to settle next week,” a Singapore-based trader said.