Ex-CIS billet offer prices have increased this week, following the uptrend seen in the scrap segment. At the moment, there are many negotiations mainly in the MENA region as customers are interested to buy before prices rise further.
Offers from major CIS-based mills have been mostly heard at $395-400/mt FOB, up by $10/mt from late last week. Some traders have said that the price level of $390-395/mt FOB may already be workable. Only from the Azov Sea were the latest prices below $390/mt FOB, but “we are not considering it as a market level,” a major trader said. One of the sources said that there are negotiations at $380/mt FOB at the moment and the deal should be signed very soon.
Many sources mentioned that there have been orders from Saudi Arabia, Tunisia, Algeria and Turkey. The market is waiting for a number of deals this week.
CIS-based suppliers have been not focused on the Asian market lately due to low bids there and the availability of cheaper distressed cargoes. There have been rumours about offers from the Black Sea at $415-420/mt CFR Manila, which have been disproved. At the moment, offers from the CIS-based mills have to be not below $435/mt CFR.
The SteelOrbis daily reference price has increased by $10/mt to $390/mt FOB.
