CIS-based billet exporters have been insisting on prices above $600/mt FOB and this level has been confirmed in one recent deal to the Middle East. High scrap prices in Turkey and the overall limited allocation have supported the billet price rise.
According to market sources, about 20,000 mt of ex-Ukraine billet have been traded to Qatar at about $610/mt FOB base. The number of offers from the CIS has dropped visibly over the past few days as even those producers who still have some allocation have decided to wait until the end of the holidays and not to sell even at $600/mt FOB now. “No one is selling anything yet. We cancelled plans to sell at $600/mt FOB even small volumes,” a Russian producer said. Exporters were mainly offering billet at $600-620/mt FOB late last week, as SteelOrbis reported earlier.
Turkish billet importers have been quiet lately, while they have received the latest offers at close to $630/mt CFR, but bids have been reported at $610/mt CFR or so. According to sources, the market needs more time to react to the new reality and further scrap price movement is awaited.
The SteelOrbis reference price for ex-CIS billet from Black Sea is at $600-610/mt FOB, stable from December 25, but up by $5/mt on average from December 24.