The tradable value for ex-CIS billet has declined further, based on weakening bids and slow demand from end-users in key sales destinations. According to SteelOrbis, the tradable value has come to $410/mt FOB, from $415/mt FOB on average late last week. Moreover, most bids from traders have not been above $405/mt FOB, taking into account the bearish sentiment in the market.
“I had an offer at $410/mt FOB, but rejected,” one of the sources said. A few mills’ sources have also confirmed that the tradable value is hardly above $410/mt FOB.
End-user demand in the MENA region has not been enough to support ex-CIS billet prices. The latest small-tonnage bookings to Turkey have been at $425/mt CFR level, which translates to $410/mt FOB. In North Africa, bids from Tunisia and Algeria have been very rare.
At the same time, CIS-based mills have not been active either in offering, seeing uncertinty in the market. “The market is quiet and negative,” a trading source said, reflecting the overall sentiment in the market.
In Asia, China is still inactive and, with the recent further drop in domestic billet prices (by RMB 50/mt or $7/mt during the weekend), the revival of imports of billets is unlikely, sources believe. The workable level for imported billet in Southeast Asia was at $450-455/mt CFR last week, which is equivalent to around $410/mt on FOB Black Sea basis. There has been no confirmation of sales of ex-CIS billet from the Black Sea to Asia recently, with only volumes from Russia’s Far East traded to the Philippines during the past few weeks, as was reported earlier. “Some Asian countries are still buying but of course the demand is not at the same levels [as earlier when China was buying],” a source said.
Looming fresh lockdowns in Europe have also put pressure on sentiment in the billet market, making traders and end-users more cautious.
