As the scrap prices in Turkey have started to show signs of improvement, most market sources believe that ex-CIS billet prices are already at the bottom and will rebound soon. Some large steel mills have already reacted to positive scrap moves and have increased their offers.
At the moment, the SteelOrbis reference price for ex-CIS billet stands at $530/mt FOB, down by $5/mt compared to late last week. It has declined mainly indicatively amid weak sentiment and low bids. There have been rumours of some small sales at $525-530/mt FOB, which have not been confirmed. “Most large mills are watching the market and not giving firm offers,” a Russian producer said. Market sources said that, when import scrap prices in Turkey fell to below $390/mt CFR, the highest possible billet price level for the Turkish market became $525/mt FOB from the Black Sea region. “But over the past two days, sentiments have started to change and now a rebound is inevitable,” a source told SteelOrbis. As reported today, the latest deal price for HMS I/II 80:20 scrap has reached $395/mt CFR.
On Wednesday, February 10, some large CIS-based mills have started to voice prices at $540-550/mt FOB, while offers were at $535-545/mt FOB last week.