CIS-based billet suppliers have increased export offers further amid the higher scrap prices accepted in Turkey and the further increase in deal prices this week.
A contract for 10,000 mt of ex-Ukraine billet has been signed at $395-400/mt FOB this week. The sales destination is unknown by the time of publication. Moreover, another deal for 10,000 mt from Russia has been done at $400/mt FOB to Tunisia. Though most customers have still been insisting on $390-395/mt FOB and not higher, CIS-based producers have increased offer prices and are not offering below $400/mt FOB since early this week. The deep sea scrap price increase by $8/mt has supported billet suppliers.
Offers by major CIS mills have been heard at $400-405/mt FOB for end January-February shipment, while one of producers have been asking $415/mt FOB as it can provide much earlier delivery.
Nevertheless, overall demand from major sales destinations has been weak as many customers have been not ready to accept such an increase so far. There can still be some demand from the GCC in the near future, but bids are at $395/mt FOB maximum. Egyptian importers have still been reluctant to buy at higher prices amid high port stocks, but a number of enquiries have been heard in the market. The tradable level is $410/mt CFR for medium-sized volumes.
Offers to Turkey have been at $400-415/mt CFR from both mills and traders. Some small tonnages from Rostov have been booked at $395-400/mt CFR for December shipment depending on the region in Turkey.
The SteelOrbis daily reference price has added $5-10/mt to $395-400/mt FOB.
