Although demand for billet in the international markets is better than global demand for rebar, ex-CIS billet prices have declined as a result of the downward pressure exerted by buyers.
SteelOrbis has been informed by market sources that ex-CIS billet offers which were at $450-460/mt FOB last week are mostly at $440-450/mt FOB in the current week, while sales have been concluded in this new price range. On the other hand, some CIS-based mills are still offering higher price levels to the international markets since their order books are fairly full.
While a billet sale from Ukraine to Algeria was concluded yesterday, March 27, at $463-465/mt CIF for May shipment, another billet transaction from the Sea of Azov was concluded at $440/mt FOB, for shipment after April 15. Also, it is heard that an ex-Black Sea billet deal was concluded two days ago at $445/mt FOB.
In Turkey, an important billet export market for CIS-based suppliers, the gap between prices of producers and trading companies which was wider in previous weeks has narrowed slightly after producers reduced their offers in the current week. SteelOrbis has been informed that Russian billet offers in the Turkish spot market are at $455-460/mt CFR, but Turkish buyers’ firm bids are at lower levels.