Though major billet exporters from the CIS have been trying to hold prices back from further declines, subdued demand in the main sales destinations and the continuation of the downtrend in the scrap market have put pressure on ex-CIS billet prices, which have lost $5/mt, falling to $355-360/mt FOB.
Some mills are still insisting on $365-370/mt FOB for October shipment billet, but the workable level has not been higher than $360/mt FOB, while demand has stayed at minimum levels even after the provision of discounts. “I cannot tell what the current market level is. We should wait until customers come back to the market. Because while they are hiding, there is no market,” a representative of a major CIS mill said.
An offer for November shipment billet to Turkey has been heard at $370/mt CFR ($355/mt FOB), but the customer has rejected it. Moreover, ex-CIS offers to Egypt have been at $380-385/mt CFR (equivalent to $355-360/mt FOB), while traders have been selling material from ports even at $10/mt below this level, SteelOrbis has been informed.
Suppliers have been trying to hold prices, trying to accelerate sales to Asia. Offers from three mills from the Black Sea region have been heard at about $410/mt CFR, which corresponds to $360-365/mt FOB, while there has been a rumor that a deal was done, but last week, though this has been not confirmed by the time of publication. At the same time, a supplier from Russia’s Far East has been able to sell at the same CFR level to the Philippines.
