Ex-CIS billet prices have increased visibly since last week as mills have started to get higher bids from China, where purchases have been more active, and so sellers have been more confident about the prospects for a further hike in the market. Price increases have been confirmed in the latest bookings to Southeast Asia, Latin America and Africa.
A cargo of 30,000 mt of Russian SAE1008 billet has been booked to Indonesia at $465/mt CFR, SteelOrbis has confirmed, which is equivalent to $425/mt FOB. Taking into account the higher grade billet in this deal, the price level has been assessed as being on the low side in the current market conditions. Firm bids from China have been heard at $465/mt CFR, which translates to $427/mt FOB, sources said, taking the freight rate at $38/mt. “Taking the prices that China can give, the FOB price level should not be below $425/mt FOB, but we decided not to confirm this level and will try to get higher prices at other destinations,” a major producer said. Some traders, dealing with ex-CIS billet, have said that it is possible to find a buyer even at $470-472/mt CFR in China, but no deals have been heard so far.
One Russian producer has also sold 20,000 mt of billet via a trader to Brazil at $427/mt FOB. Another Russian exporter has sold a cargo to Africa at $425/mt FOB. “Prices have definitely increased and it is hard to find volumes even at $425/mt FOB,” a source said.
Firm bids from Turkey have been heard at $428-433/mt CFR for ex-CIS billet, which have been unattractive for the large suppliers. The recent scrap price increase in Turkey has supported the bullish view of CIS-based billet exporters.
The SteelOrbis reference price for ex-CIS billet has increased by $12/mt to $425-427/mt FOB, based on the latest deals.