The CIS billet export market has been quiet due to the New Year and Christmas holidays this week and trading activity is expected to increase from next week. The market is still optimistic in general for the post-holidays period, even though some market sources are not sure that most buyers will accept any significant increase in the short term.
There have not been many offers from the CIS-based mills this week due to the New Year and Christmas holidays. Large Ukrainian mills have been voicing offers at $600-605/mt FOB, while most Russian producers have been staying out of the market.
Before the holidays, 20,000-25,000 mt of ex-CIS billet were traded to Tunisia at a price equivalent to slightly below $600/mt FOB. Also, contracts at slightly above the $600/mt FOB mark have been heard in the market, but without details so far.
A demand revival is expected from Egyptian buyers. There has been a rumor about a low-priced offer for ex-Brazil billet at $610/mt CFR Egypt, but a number of sources said that the origin could not be Brazil as mills there do not have allocation for export, and from the price it looks like this is material originating from Iran. But “Egypt will not touch Iranian billet after that case [one vessel was stopped and the trader got a forfeit]. So, the lowest prices may come for billet from India or of some other origin,” a Europe-based trader said. The tradable level for ex-CIS billet in Egypt is around $590-595/mt FOB Black Sea.
In Turkey, the import billet business has been quiet except for some rumored deals at around $645/mt CFR to the Marmara region, with no details disclosed or confirmed. Most sellers are not in a hurry to offer, but some say $635/mt CFR for 10,000-15,000 mt lots may be acceptable for them, while some bids for small lots for prompt shipments have been voiced at $640/mt CFR Bartin. The freight to Turkey is estimated at $30/mt on average. Overall, some optimism exists among the Turkish market players due to the somewhat positive scrap market, but not many believe the uptrend will be a sharp one.
The negotiations for imported billet are continuing in the GCC. One of the large buyers in Saudı Arabia is still in negotiations for 50,000 mt of billet and has received an offer for ex-Indonesia billet at $635/mt CFR, while offers from CIS-based mills have been at $640-650/mt CFR. The deal has not been done yet as the bid was at around $615-620/mt CFR.
In Southeast Asia, prices have declined because of weak demand and one offer for ex-Russia billet has been reported to Taiwan at $620/mt CFR lately, while in late December the tradable level was $615-635/mt CFR.
The SteelOrbis reference price for ex-CIS billet has increased slightly, up by $5/mt on the upper end compared to the previous week, to $595-605/mt FOB Black Sea.
