Prices for ex-CIS billet have increased by the middle of this week amid a slight demand improvement, while some big Russian mills are still evaluating the impact of the export duty and have been quiet.
Offers from Ukraine have been increased to $650/mt FOB Black Sea and above, while a week before mills were asking for $640/mt FOB and were ready for negotiations. Market sources said that, though the fundamentals have not changed much, a very limited number of offers from Russia and some rare inquiries have encouraged Ukrainian billet suppliers.
A contract for around 10,000 mt of ex-Ukraine billet has been reported to Tunisia at $685/mt CFR, translating to $645/mt FOB or so, SteelOrbis has heard from the market.
In addition, 20,000 mt of ex-Ukraine base wire rod grade billet have been sold at $675/mt CFR to Turkey, which translates to not below $640/mt on FOB basis.
A trader has also booked ex-Belarus billet at $658/mt CFR, but the final sales destination has not been confirmed by the time of publication (Turkey or North Africa) and this price has not been included in the general reference price range as this was a trader’s position.
One booking for an ex-Russia billet has been heard in the market by a trader over the past week - to Italy at $695/mt CFR. But such a high price level (equivalent to as much as $660/mt FOB) is connected to the prompt shipment of material - in July, which is not available in the market now. The new 15 percent export duty (not less than $115/mt) on Russian billet will be paid for shipments from August 1. Most Black Sea-based producers are taking their time and just watching the market.
In the Asian market, which has started to revive this week owing to improved buying from China, a Russian mill has managed to sell billet at $680-685/mt CFR Taiwan for September shipment from Far East ports, while last week the tradable level was assessed at $670-675/mt CFR.
The SteelOrbis reference price for ex-CIS billet has increased by another $5/mt today and by $10/mt since late last week to $635-645/mt FOB Black Sea.