Workable ex-CIS billet prices have once again increased in the Black Sea region, supported mainly by the demand coming from North African countries. Although Egypt has booked large volumes over the past two weeks, further negotiations are continuing, sources say. As a result, although business in the Turkish market has mainly been insufficient, CIS-based suppliers are relaxed for now as their allocation for March production is fairly limited.
According to market sources, the latest deals for ex-CIS billet have been closed at $620-625/mt FOB, up $5/mt from last week’s levels. Specifically, a mill from Ukraine has sold over 15,000 mt of billet to Morocco at $620/mt FOB, SteelOrbis has learned. In addition, a deal at $630/mt FOB has been rumoured in the market, though with no details disclosed or confirmed by the time of publication. “Egypt is slowing down as they have booked a lot of billet lately, but inquiries are still heard,” a trader said.
Contrary to North Africa, the billet market in Turkey remains less active in terms of purchases and not every customer is ready to place high bids. Citing sales to other destinations, some CIS-based mills have increased their offers to Turkey by $5-10/mt to $660-675/mt CFR and even higher levels have been heard in the market. “For lots of 10,000 mt and bigger, there is not much interest over $645/mt CFR Turkey as they can book at $655-665/mt ex-works/CPT locally and on TL basis,” a trader told SteelOrbis. Freight to Turkey is currently estimated at around $30/mt but varies depending on the region and cargo size. A $640/mt FOB sale to Turkey has been discussed in the market, although most sources believe it was not done as the level is too high to be acceptable for Turkish mills. “It could have been booked by a sections producer, but still the level is too high to be a relevant market indication,” a source mentioned. Some producers believe that, if the deal has been closed, the price should include up to $20/mt extras.
The SteelOrbis reference price for ex-CIS billet has increased by $5/mt since late last week to $620-625/mt FOB, with the midpoint at $622.5/mt FOB.
