Prices for ex-CIS billet have increased recently as Chinese importers have been more interested in purchases and their bids have gradually been going up. Demand for billet from the MENA region has remained weak so far.
A deal for 45,000 mt of ex-CIS billet from the Black Sea region was signed at $395/mt CFR China late last week, which translates to $365/mt FOB. Before prices started to improve, buyers from China were not ready to pay above $380-385/mt CFR.
At the moment, bids for non-Southeast Asian billet, including ex-CIS material, have been heard at $395-398/mt CFR, SteelOrbis has learned. Some sellers from the CIS and India have increased offers to $400-405/mt CFR China, seeing strong iron ore prices, which fluctuated at above $100/mt CFR, and firm rebar demand in China. “The situation has improved in Asia, but customers from North Africa and other markets are just starting to return after Ramadan,” a source said.
A small-volume contract of ex-CIS billet was done to Tunisia at $370/mt CFR or close to $350/mt FOB last week. But this week the tradable value for North Africa should be not below $355-357/mt FOB, sources have said.
Offers of ex-CIS billet to Turkey have been at $370-375/mt CFR ($360/mt FOB).
The SteelOrbis daily reference price for ex-CIS billet has increased from $350-355/mt FOB to $357-365/mt FOB.