CIS-based billet suppliers have increased offers further and have managed to sign some contracts mainly to Turkey and North Africa. Firmer scrap prices and the limited billet allocation have been the major drivers.
The SteelOrbis daily reference prices for ex-CIS billet have increased from $360-365/mt FOB to $365/mt FOB on Wednesday, October 23. About 10,000 mt of ex-CIS billet was sold to Tunisia at $385/mt CFR (about $365/mt FOB) early this week. Moreover, the same volume has changed hands to Algeria from one of the Russian Black Sea region-based mills at $390-395/mt CFR for November shipment, which equivalent to $365-370/mt FOB. The major importers in Algeria are still out of the market, but some small re-rollers have been looking to restock, sources said. “We can see demand in the same markets as before, except Egypt,” a major CIS-based supplier told SteelOrbis. Offers to Egypt have been heard at $385/mt CFR ($360-365/mt FOB) and some exporters have voiced prices $10/mt higher, which is “too high for customers, who are still buying mostly from ports,” a trader said. As a result, in the fresh deals to North Africa suppliers managed to fix a $5-10/mt increase, as late last week about 20,000 mt of ex-CIS billet from a first-tier mill was traded at $355-360/mt FOB.
There have been some interest in purchases of ex-CIS billets from Turkey, but not from steelmakers. The maximum tradable level has been assessed by most market insiders at $365/mt FOB. But there have been a few deals done for about 15,000 mt in total at $374/mt FOB, the Russian supplier confirmed. Though such a high price level has been assessed above the real market price at the moment, it has been achieved because some customers have been looking for material with earlier lead times. The deals have been for prompt shipment, sources said. There has also been a rumour that some tonnages have been sold to southern Turkey at the level corresponding to slightly above $365/mt FOB, but SteelOrbis could not confirm this information by the time of publication. Offers from the Donbass region to Turkey have been heard at $365/mt CFR, $5/mt above last week’s level.
General offers from CIS-based mills have increased by another $5-10/mt this week to $365-375/mt FOB and suppliers will keep insisting on higher levels in the near future, because there have been a lack of available volumes in the market. Out of four major mills present at the market at the moment, some have already sold a big part of December shipments, while one mill “has already closed this year’s sales,” a trader said.