CIS-based billet exporters have visibly increased their prices this week, following the scrap price rise and more active inquiries from Turkey. There has been a lack of support from customers in other sales destinations though.
Official offers from CIS-based mills in the Black Sea region have been starting from $360-365/mt FOB, sources said. A deal for 10,000-15,000 mt of Russian billet was disclosed yesterday at $367-368/mt CFR Turkey, which corresponds to $350-355/mt FOB Black Sea. At the moment, suppliers are targeting $375/mt CFR ($360/mt FOB) and above in Turkey and a number of negotiations have been heard in the market. “There are no other markets except Turkey for CIS suppliers now,” a trader said.
Buying activity in Egypt has slowed down recently due to the announcement of the postponement of the reduction of billet import duty. The previous deals for ex-CIS billet in Egypt were signed at $360/mt CFR maximum ($340-345/mt FOB) and no trades at a higher level have been heard recently. The higher possible level for customers is $365/mt CFR ($345/mt FOB) at the moment, sources have said.
The Asian market has also not been attractive for billet suppliers from the Black Sea region. The workable level in Southeast Asia and China has increased to $365-375/mt CFR, which is equivalent to $335-340/mt FOB Black Sea on average. A small tonnage of billet from Russia’s Far East has been sold at $375-380/mt CFR China.
The SteelOrbis daily reference price for ex-CIS billet has increased from $345-355/mt FOB to $350-355/mt FOB on April 15.
