Ex-CIS billet prices drop below $400/mt FOB

Thursday, 23 January 2020 17:38:45 (GMT+3)   |   Istanbul
       

The workable price level for ex-CIS billet from major mills has decreased to $395-400/mt FOB, following the sharp scrap price decline in Turkey. It is impossible to sell at any higher level in the current market conditions, most sources have said.

Though there have been no deals reported from large producers below $400/mt FOB and they have mainly been insisting on offers at $405-410/mt FOB, as previously, these levels are no longer workable. A deal for ex-CIS material has been reported to Oman at $390/mt FOB, but some sources said that it could be billet originating from the east of Ukraine, though this has not been confirmed by the time of publication. A contract to Turkey from one of the marginal suppliers was also signed at $413/mt CFR last week, which corresponds to below $395/mt FOB.

“There have been no deals from well-known mills at $395/mt FOB or so. But offers have started to come directly from mills close to this level,” a trader said. The material of at least three mills from Russia and Ukraine has been offered to Asia at $445/mt CFR, which corresponds to $400/mt FOB, while some negotiations have also been heard at $440/mt CFR, sources reported.

Bids have been heard mostly at $395-400/mt FOB lately, while some sources think that even $390/mt FOB is only a matter of time. The worsening of sentiment in the market has been connected with the deep sea scrap price drop of $11/mt yesterday, January 22. As SteelOrbis reported earlier, a lot including 22,000 mt of ex-UK HMS I/II 80:20 has been traded at $277/mt CFR for the second half of February shipment. Moreover, a number of deep sea scrap suppliers, from the EU and the US in particular, have been offering at $280-285/mt CFR, and may agree to sell at $277-280/mt CFR, and so more deals are expected in the near future. 


Similar articles

Ex-Asia billet offers become more affordable in Turkey, market slightly optimistic

27 Mar | Longs and Billet

Ex-India billet prices stable, but buyers try to push below $490/mt FOB

27 Mar | Longs and Billet

Ex-ASEAN billet sales continue at low prices, China turns negative again

26 Mar | Longs and Billet

Global View on Billet: Better sentiments, suppliers fail to achieve higher deal prices so far

22 Mar | Longs and Billet

Turkey’s Kardemir issues planned sales volumes for April-June

22 Mar | Steel News

Import billet prices in SE Asia hit new low, trend reversal anticipated

21 Mar | Longs and Billet

Domestic billet sales livelier in Turkey, import price range narrows amid limited allocation

21 Mar | Longs and Billet

Ex-India billet sellers ready to accept lower prices to push sales amid weak local conditions

20 Mar | Longs and Billet

India’s RINL floats export tender for 30,000 mt billet for end-April shipment

20 Mar | Longs and Billet

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News