Prices for ex-CIS billet have touched $600/mt FOB and exceeded this level in offers recently, following the recent further spike in scrap prices in Turkey. Most producers have been on sidelines, not willing to sell at the moment amid low allocation and preparing to leave the market for long holidays.
Most offers from the major Russian and Ukrainian billet exporters have been reported at $600-620/mt FOB, up from $580-605/mt FOB earlier. “There are not many offers. Some rare offers are at $615-620/mt FOB. There is simply no material,” a trader said. Two Russian mills have been voicing offers at $600/mt FOB, which could be workable in the Turkish market, according to sources, taking into account the current scrap prices, which have reached $473/mt CFR in the latest deal. “The billet price is rising together with scrap. I think it is hard to buy billet from Black Sea at below $600/mt FOB now,” a producer said.
“Scrap prices surged and no one will discuss anything below $600/mt FOB, but people [CIS-based exporters], I think, will not be offering,” a trading source said.
Some producers from the East of Ukraine have been offering at $610-615/mt CFR to Turkey, but prices from this region are usually lower than the benchmark level.
Traders are mainly watching the market as they have already been sold out mostly and will return to the market in the middle of January.
Turkey has remained the major destination for the CIS-based exporters, firm offers from other outlets like North Africa have been scarce. In Southeast Asia, the tradable level has reached $595-600/mt CFR this week, which is too low for billet sellers from Black Sea as it is equivalent to $555-560/mt FOB. Only Far East Russia billet could be traded in the Southeast Asian market, but the offer volume from the major suppliers there are also limited at the moment.
The SteelOrbis reference price for ex-CIS billet has been increased by $20/mt to $600/mt FOB Black Sea.