Ex-CIS billet prices have retreated this week, which has been reflected in the latest deals, to Turkey specifically. But today, Thursday, June 24, market sources have rather been discussing the possibility of price rises in the future because of a planned 15 percent export duty proposed for five months starting from August 1.
One of the CIS-based billet exporters sold 10,000 mt to a Marmara-based Turkish buyer at $660/mt CFR at the end of last week, which has been assessed as the lowest level heard in the market so far. But the freight is said to be reduced for this seller and the FOB price would not be below $640/mt FOB, sources have told SteelOrbis.
“People [from Turkey] want $660-665/mt CFR, but sales are limited due to high freight,” a trading source said. At the moment, the freight costs from the Black Sea to Turkey start at not lower than $25/mt.
A 10,000 mt ex-Russia sale has been rumoured to Turkey at $680-685/mt CFR Izmir, while a small lot of the same origin has been confirmed to this region at $683/mt CFR for prompt shipment.
Last week a few bookings for ex-Ukraine billet have been done at $650-660/mt FOB to Africa and Europe, but these prices are considered to be on the high side at the moment. The fresh offers from CIS-based mills have been heard at $645-650/mt FOB and up to $660/mt FOB in some cases.
One of the Russian-based mills said that the recent news about the possible introduction of 15 percent export duty on all kinds of steel production for five months starting from August 1 “will put pressure on prices in the local market, but at the same time will provide support to the international market.” Since Russia is one of the largest billet exporters, some price rises for export prices in this case are inevitable, sources believe.
For now, ex-CIS billet prices have settled at $640-650/mt FOB, down by $5/mt on average from $640-660/mt FOB since late last week.