The situation in the CIS billet market has not improved since last week as scrap prices have decreased again with more than 200,000 mt of scrap being sold to Turkey in the first half of this week. The SteelOrbis reference price for ex-CIS billet has decreased by $5/mt over the past week to $350-355/mt FOB and more enquiries have started to come to suppliers.
The latest deal price levels for ex-CIS billet to Turkey have been at $353-355/mt FOB, SteelOrbis has learned. At the same time, there has been a rumour about a sale to Egypt also close to $350/mt FOB, but the information has been not confirmed by the time of publication. “Most CIS producers can give $350/mt FOB, but it is difficult to sell,” a trader told SteelOrbis. Bid prices from a number of customers have been at $345-349/mt FOB and more inquiries have been heard in the market. One major CIS steelmaker has been in negotiations at below $350/mt FOB this week, but there have been no details.
An additional factor weighing on billet prices from the CIS has been the higher activity of Turkish exporters, who have managed to close deals at $355-360/mt FOB.
Major CIS mills have been actively looking for demand in the Asian market. A rumour has been heard about 40,000 mt of billet from the Black Sea region sold to Asia, but the supplier has denied it. The offer levels from a number of sources, including the CIS and India, to Southeast Asia have been at $395-405/mt CFR, which is equivalent to $350-360/mt FOB Black Sea depending on the country-destination, but demand for big tonnages has been limited. Ex-Russia sales from Far East ports have been heard at close to $400/mt CFR, but part of the tonnage has been for China.