After the holidays seen early this week, information about lower offers and deals for ex-Russia billet to different outlets have started to emerge. Even though many buyers have not returned to the market yet, a further price drop is inevitable, sources have told SteelOrbis.
In Asia, the latest deals for ex-Russia billet from the Far East ports of Russia have been reported to both China and Southeast Asia with discounts at $20-40/mt from the previous levels. In particular, a contract to China was done at $650/mt CFR (down from $670/mt CFR in the middle of April), while a deal to the Philippines was done at $700/mt CFR last week. As a result, the FOB price from Russia’s Far East has come to $600-645/mt FOB depending on the sales destination. Moreover, these levels are not the bottom, sources believe.
At the same time, in Turkey and North Africa many buyers have not returned to the market fully. One trader said that in Iskenderun there are no offers, because bids are absent. Before the holidays, a deal at $720/mt CFR was reported from Russia to Turkey, but new offers are expected at $700/mt CFR or below, according to sources.
An offer for an ex-Russia billet from the Black Sea has been reported to Egypt at $690/mt CFR, which is equivalent to around $630-650/mt FOB. As it was offered by a medium-sized mill, other producers may follow. “The market is crashing for all products,” a trader said.
The SteelOrbis reference price for ex-Russia billet has been lowered indicatively to $650-680/mt FOB with the midpoint at $665/mt FOB Black Sea, down by $20/mt on average from late last week.