CIS billet suppliers insist on rebound, successful in rare deals

Thursday, 10 October 2019 17:17:32 (GMT+3)   |   Istanbul

CIS billet exporters have been insisting on higher prices this week following some increase seen in the scrap segment. SteelOrbis’ daily price has increased from $350-355/mt FOB to $355/mt FOB.

Offers from mills have gained by $5/mt over the week to $355-360/mt FOB with some small sales for Africa heard from a producer close to the lower end of the range. About 30,000 mt of billet from a major mill has been sold to Turkey at $370/mt CFR ($355/mt FOB) recently. Moreover, a trader has purchased some 10,000 mt produced by first-tier mill at close to $360/mt FOB. However, most traders said that no one from medium or large buyers are ready to accept prices above $355/mt FOB. “The market level is still at $350/mt FOB and $355/mt FOB is the maximum that suppliers can get,” a source said.

As SteelOrbis reported earlier, customer from Saudi Arabia has bought 50,000 mt of billet from Ukraine at $380-385/mt CFR early this week, which is equivalent to $350-355/mt FOB, according to sources.

The workable level for North Africa has been $375/mt CFR (about $350/mt FOB) for November shipment early this week. A deal to Egypt for billets from port has been closed at $370/mt CFR last week, in line with transactions earlier. But, later this week, a deal to Egypt from the CIS has been concluded at $356/mt FOB by trader. 

The latest sales from Russian Far East ports have been heard at $395/mt CFR ($375/mt FOB) but mills have been also insisting on rebound to $400-405/mt CFR Southeast Asia.

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