Ex-Russia billet suppliers have switched their focus from the Turkish market to North Africa, Egypt in particular, where the acceptable prices have been better at a time when Turkish buyers have mainly retreated from imports after the decline seen in scrap prices. As a result of the recent sales to Egypt, the SteelOrbis reference price has increased from the previous level by $7.5/mt to $470-490/mt FOB.
A few deals for 20,000 mt each of ex-Russia billet have been rumored at $488-490/mt FOB Novorossiysk, with the freight being assessed at up to $35-40/mt. Market sources have confirmed that the CFR prices in Egypt, including some additional expenses, have been mainly at $530-540/mt CFR for November shipment. Moreover, “for prompt shipment the price is not less than $550-560/mt CFR,” said a source involved in the trading of ex-Russia billet to North Africa. He also added that there is some shortage in billets offered to the market since, after the introduction of the export duty in Russia, which stands at seven percent for now, Russian mills have been targeting higher levels or have been turning to the local Russian market instead of exports.
“I believe this is a mill’s direct sale [to Egypt],” one trader said. Another trader added that in Turkey this price is too high, but for the sellers’ side “this price is not surprising.”
As for Turkey, the tradable level for ex-Russia and ex-Donbass billet is still hardly above $470-475/mt FOB Black Sea, translating to minimum levels of $500-505/mt CFR. Turkish buyers have been more interested in other origins like Algeria or local purchases to cover urgent needs. The billet offers in Turkey have moved up to $550-560/mt ex-works Iskenderun, with several deals concluded at $549-550/mt ex-works, sources say. The latest billet offers in the Marmara region were reported at $540/mt CPT, but before scrap prices declined.