CIS-based billet suppliers have been resisting the downtrend of export prices, hoping that better sentiments in the scrap segment will provide some support. Though some deals with discounts were concluded last week, exporters have been expecting a slight rebound soon.
Last week, a deal to Turkey was signed at $350/mt FOB and this week offers are still coming at about $365/mt CFR, which corresponds to the same level. One of major mills from Russia sold billet at $347/mt FOB late last week, according to traders. “Nobody will go below $345/mt FOB nowadays,” a trader said.
There has also been a rumor that 30,000 mt of Ukrainian billet have been traded at $345/mt FOB to Saudi Arabia. Most market participants said that the deal has not been done, but negotiations at this level have taken place.
The workable level for billet in North Africa has been at $370-375/mt CFR (about $345-350/mt FOB), but there have been no reports of deals from the CIS.
As a result, ex-CIS billet prices have been at $347-355/mt FOB, considering offers and deals, while the lower end of the range has inched down by $3/mt compared to the end of September.
In the Far East, a Russian mill has been offering at $5/mt higher - at $405-410/mt CFR, but has failed to find any response.