Prices for ex-Russia billet, shipped from the Far East ports of Russia, have declined this week, in line with the general market trend. Overall allocation from Russia to Asia has not been so big recently, but weak demand has been putting pressure on offers.
Late last week and early this week, a deal for 100 mm billet from the main mill in Russia’s Far East region was signed at $490/mt CFR for October shipment to Thailand. Usually, 100 mm billet is discounted compared to the most popular 130-150 mm billets in the region, by at least $10/mt. After this deal, traders have started to offer ex-Iran billet at a lower level, with a rumor about a sale at the same $490/mt CFR level being heard, but this has remained unconfirmed by the time of publication.
Offers for 150 mm billet from the same Russia mill have also declined to Taiwan, being reported at $510/mt CFR, versus $517/mt CFR late last week. But “bids are at $500-505/mt CFR now,” a trader said.
Russian mills, which ship from Far East ports, are not in a rush to drop prices much as they have a limited available allocation for September shipment. In addition, there has not been much attention given to the Asian market by ex-Black Sea suppliers as, with minimum freight of $60/mt, the current FOB offers are hardly below $505/mt CFR. Also, there is no demand for large volumes in Southeast Asia now.
