The Egyptian billet market remains active in terms of imports with new sizeable deals reported, this time closed from the CIS. Still, the competition among the sellers offering billet of various origins remains rather tight and might affect pricing in the short term.
According to sources, an ex-Ukraine steel producer has recently traded 60,000 mt of square billet at around $690/mt CFR Egypt while the initial offer was standing at $10/mt higher. As a result, taking into account the estimated freight of around $50/mt, the level of $640/mt FOB from the CIS has become workable as was expected earlier this week. However, by the end of the week some market players considered that $670/mt CFR might be more realistic for upcoming deals.
As a result, sentiment in the CIS billet export market has worsened by the end of the week, as not many active trading destinations apart from Egypt are seen now. “The indication price for ex-CIS billet is $638-642/mt FOB,” one source said, but a number of market participants evaluate the real market level at hardly above $630/mt FOB Black Sea at the moment. “The pressure from huge Indian volumes is very big,” a Russian supplier said. Traders have been actively offering ex-India billet bought earlier for China and newly purchased from tenders this week.
An ex-India 30,000 mt cargo is reported to have been sold to Egypt at $680/mt CFR. In addition, there is information in the market regarding another trading company having just closed around 20,000 mt in a tender with another India-based mill at around $600/mt FOB and the cargo is once again most probably destined for Egypt. Traders’ offers for prompt shipment Indian cargos would be at much lower levels, sources have said.
The latest billet deals from Iran have been reported in the market at $650-655/mt CFR, marking for now the lowest level in the Egyptian market. “Import billet prices in Egypt might appear under pressure quickly as everyone is trying to sell there. A lot depends on the Iranian situation as they are having gas supply issues which can impact their presence in the export markets. So that should be good for the market,” a billet seller told SteelOrbis.
For now, the SteelOrbis reference price for ex-CIS billet has remained at the levels of $630-640/mt FOB reported earlier this week.