Ex-CIS billet prices have declined this week as trading activity has been limited with buyers’ bids dropping further. At the same time, the lack of clarity in the scrap market in Turkey has added to the situation. SteelOrbis’ ex-CIS billet reference price is at $400-405/mt FOB, down $4/mt on average.
Offers from major CIS-based mills from the Black Sea region have been at $405-410/mt FOB. A Ukrainian EAF-based supplier has been offering at $400/mt FOB, at least $5/mt below last week’s level. There have been some reports that material for prompt shipment is still available at $415-420/mt FOB, but “this price is unreasonable” in current market conditions, sources said.
Another big lot of ex-Ukraine billet was rumoured to have been sold to Saudi Arabia at $435/mt CFR, but SteelOrbis has confirmed that there have been no new deals, while the contract signed last week was below $440/mt CFR, lower than initially voiced in the market $442/mt CFR.
Bids from traders and some end-users in North Africa have been heard at $395-400/mt FOB. “Customers froze, as they are afraid to buy too expensive,” a trader said.
Negative sentiments have prevailed in the Turkish market, putting pressure on ex-CIS billet prices. After Turkish steelmaker Kardemir’s sale at $416/mt ex-works, re-rollers will bid at $410/mt CFR and below for imported billet, which corresponds to $395/mt FOB for ex-CIS material. Suppliers from the Black Sea are waiting for clarity in the Turkish scrap market. Until more deals are signed at lower levels, there will still be much speculation in the billet market, supported by negative sentiments, sources have said.