After the rise in ex-Russia billet prices last week, prices have retreated somewhat this week. Though supply from Russia has remained limited, competition in the major sales destination, Turkey, is still tough. Poor demand for billets and finished steel have been putting pressure on prices.
There have been reports of sales of ex-Russia billets by traders to Turkey at $570-575/mt CFR, with payment after arrival, versus offers at not below $590/mt CFR last week, though the information about these deals could not be confirmed by the time of publication, “I believe that for large volumes $575/mt CFR is not a surprising price,” a trader said. A bid from one large buyer in the Izmir region was reported at $555/mt CFR, though no confirmation was received that any seller had accepted it.
The offer volumes from Russian and Donbass-based plants occupied by Russia are still very limited. Suppliers who were targeting $600/mt CFR for prompt shipment billet have been taking a break. For small volumes and prompt shipment, the tradable level seems still above $580/mt CFR, but it has also eased compared to last deal reported at $600/mt CFR late last week.
Despite the limited offer volumes from Russian suppliers, sellers of billets of other origins have been active, making competition in Turkey tough. For instance, suppliers from the GCC have become more active and offered at $570-575/mt CFR. Moreover, offers from the Far East have been heard at $575/mt CFR for December shipment, which, however, is not attractive for buyers due to very long lead times.
The SteelOrbis reference price has declined by $5-10/mt to $530/mt FOB Black Sea.
