The positive situation in China, firm scrap prices and rising billet prices have resulted in higher longs offers from the CIS. In addition, demand has been decent lately and Turkey has increased prices too, justifying the general uptrend.
Currently, CIS-based rebar exporters see no point in trading rebar at any level lower than $475/mt FOB while Turkey is at $480-490/mt FOB. In the local market in Russia, offers for rebar are at $440/mt (RUB 41,000/mt) ex-works in the southern region, where the key exporters are located. In the wire rod segment, the ex-CIS offers are at $535-540/mt FOB. Both rebar and wire rod prices have increased by around $15-20/mt over the past week and are available for January shipments, SteelOrbis understands.
In the billet segment, the producers report an increasing number of bids at $430/mt FOB, which was lastly fixed to Peru for a 35,000 mt lot from Ukraine. As a result, CIS-based billet exporters have withdrawn their export offers by the end of the week and are aiming to start negotiations at $440/mt FOB minimum.
Local prices in RUB include 20 percent VAT, prices in US dollars do not.
$1 = 77.6 RUB
