CIS-based mills have been trying to keep their billet export prices from dropping this week despite the recent scrap price decrease in Turkey and low bid prices for imported billet from major customers in the Mediterranean region. Trading has improved after the holidays, but overall sentiments have been negative.
About 50,000 mt of ex-Ukraine billet has been sold to Saudi Arabia at $442/mt CFR, which corresponds to $407-410/mt FOB base after excluding freight and extras, sources have told SteelOrbis. At the same time, it has been hard to find customers even for smaller volumes, who may accept above $405/mt FOB. “The best price for a relatively prompt cargo could be $407-408/mt FOB. For March shipment, the workable level can be $400-405/mt FOB,” a trader said.
Trader’s deals to Algeria have reflected the bearish sentiments in the market. As SteelOrbis reported earlier, two cargoes of 25,000 mt in total have been traded at $430-435/mt CFR.
At the same time, CIS-based mills have mostly refused to drop prices in deals as they have managed to sell billet to some markets at higher levels. Some tonnages of ex-Russian billet have been sold to Latin America at $415-420/mt FOB. “At the moment, the best market in terms of prices and activity is Latin America. Other markets are very quiet this week,” a mill told SteelOrbis.
Offers from CIS-based producers have been mostly heard at $410-420/mt FOB from the Black Sea and at $405-408/mt FOB from the Azov Sea. Offers from CIS-based suppliers from the Black Sea to Asia have been heard at $455/mt CFR, which translates to $410-415/mt FOB, but no deals have been reported so far.
Market participants are waiting for more clarity after more deals for scrap in Turkey and new billet trades from the CIS. Some sources believe that billet prices will be under pressure in the coming weeks.
The SteelOrbis daily reference price for ex-CIS billet has remained unchanged at $405-408/mt FOB with the average level at $406.5/mt FOB.