While import billet demand in the MENA (Middle East and North Africa) region remains insufficient, some CIS billet suppliers from the Black Sea have chosen to sell to Southeast Asia. In the meantime FOB-based levels slipped again over the week on cheaper scrap and falling bids.
A Russia-based mill, according to the sources, sold around 40,000 mt of billet to Indonesia at around $365/mt FOB ($405/mt CFR) and another 40,000 mt of billet to the Philippines at $370-375/mt FOB ($423-424/mt CFR); both transactions were closed last week for September production. “The supplier was most probably acting according the bidding price in each market, that’s why levels differ,” a source suggests. Offer prices for ex-CIS billet from Far East ports have also gradually moved down, but have not fallen below $400/mt FOB. Asian importers have been receiving offers at $420/mt CFR and slightly lower for October and November shipment, $5/mt below last week.
In the Mediterranean only small lots have changed hands at $365/mt FOB from Russia; the same level was heard in offers to Italy. Offers to Turkey have been reported at $380-385/mt CFR, equivalents to $365-370/mt FOB, while bids have been $10/mt below. North African buyers have also been ready to purchase limited volumes, negotiating at $380-385/mt CFR, but some bids have come to $370-375/mt CFR. Customers from Saudi Arabia have reduced their price ideas by $20/mt to $380-385/mt CFR ($350-355/mt FOB) this week, which has been unacceptable for suppliers.
As a result, although most first-tier CIS billet exporters were targeting $370-375/mt FOB in a sale, the actual workable level has slipped this week to $365/mt FOB, with a $5/mt lower level also considered possible by the buyers. However, the pricing will largely depend on the size of the unsold allocation and further trend in the Turkish import scrap market, SteelOrbis understands.