Prices for ex-Russia billet have remained relatively stable from those reported earlier this week and are only up slightly from late last week since, even though suppliers are still hoping to get higher levels, increased competition with other international exporters, from North Africa and Asia in particular, has led to very slow demand for ex-Russia billets.
The SteelOrbis reference price for ex-Black Sea billet has remained at $515-520/mt FOB as of early this week, while up by $3/mt since last Friday. Offers for Russian billet for prompt shipment have been stable at $550/mt CFR Turkish Black Sea ports. For March shipment, the targeted level is $550-555/mt CFR at the lowest, translating to around $525/mt FOB, while buyers’ price ideas in Turkey are still below $550/mt CFR. Increased competition and the absence of new deals for ex-Russia billet have been the main reasons for the stabilization of prices. In particular, two deals for ex-Indonesia and ex-Malaysia billets have been reported at $560-565/mt CFR to Turkey. Also, up to 80,000 mt of ex-Algeria billet have lately been traded to Turkey at $555-560/mt CFR lately since, even though the material from Algeria is not duty free, the prices have been assessed as being competitive at the moment.
Egypt’s import billet market has been another target of Russian sellers and traders, who have taken positions with Algerian billet. The recent tradable level has been assessed at $550/mt CFR at the highest for commercial grade billet, which is in line with the latest FOB-based sales from an Algerian mill to traders, adding freight and some margin. Though this level is higher than latest deals for ex-CIS billet from traders with a short lead time at $540-545/mt CFR last week, buyers have been refusing to accept a big increase in prices for now. “Egypt is not giving bids above $555/mt CFR so far, and this is for DWR [wire rod] grade, which is too low even in comparison to Turkey,” a trader, selling ex-Russia billet, said. Apart from ex-Algeria and ex-Russia billet, the Egyptian market has been targeted by Indian sellers, with one deal for 25,000 mt rumored at $515/mt FOB, which is equivalent to $545-550/mt CFR. Offers for ex-Iran billet to Egypt have been at $540/mt CFR.