Major CIS-based mills have been trying to hold offers at $400/mt FOB and above over the past week, having some time to wait and unwilling to lose positions fast. Overall demand from the MENA region has been slack with most bids for October shipment at below $400/mt FOB. However, some hopes are for sales resumption from Black Sea to Asia.
Offers from CIS-based mills have been at $400-415/mt FOB this week, as though the workable level has come to below $400/mt FOB last week, most of suppliers have been waiting for further market developments, being not in a rush to sell. A Ukrainian EAF-based producer has been offering at $400/mt FOB. Only some minor mills from the CIS have been able to give $385-390/mt FOB.
In Turkey, demand has been limited, but one deal has been reportedly done at around $400/mt FOB for September production billet. Overall market has been described as “dead” as most market participants have been waiting for the next move in the scrap market, which is expected to follow the downtrend soon. The highest bids from North Africa have been close to $395/mt FOB. A number of traders see the market level at not above $390/mt FOB for base grade billet.
This week the tradable value for imported billet in Asia has increased to $435-440/mt CFR. Apart from the sale from Far East Russia to Southeast Asia, additional tonnages have also been sold from Black Sea at $440/mt CFR, which is equivalent to $395-400/mt FOB, according to the traders’ reports. Nevertheless, this information has not been confirmed by the time of publication and a number of sources have said it could be just rumors to support sentiment. In any case, demand for billet in Southeast Asia and China has been still a positive sign in the current market conditions.
SteelOrbis reference price for ex-CIS billet has remained at $395-398/mt FOB.
