Prices for ex-CIS billet have lost ground this week as demand in major destinations has been weak and bids have weakened. Stability in the scrap market in Turkey and the not very positive outlook have impacted sentiment in the billet market.
Offers from the majority of producers from the CIS are still at $400/mt FOB and above for October shipment, but the tradable value has declined due to the local price level in negotiations. About 40,000 mt of Ukrainian billet have been traded to Peru at $398/mt FOB, according to the sources in the market. However, some market participants believe that the price level was lower – at $395/mt FOB maximum. The producer has not confirmed the price by the time of publication. But what is the most important, the majority of sources said that the price level in negotiations was below $400/mt FOB due to the pressure from low bids. A contract for ex-Turkey billet to Latin America has been reported through a trader also at slightly below $400/mt FOB.
The bullish sentiment in the Turkish market has eased this week. A deal for 3,000-4,000/mt of Russian billet for September shipment has been heard at $409-410/mt CFR Bartin. Most bids have been at below $400/mt FOB to traders.
In North Africa, customers have been asking for $400/mt CFR, which is far from the current offers and, even taking into account worsening sentiments, it will hardly be achievable soon.
Though prices in the Asian market have been stronger this week, they are still low for suppliers from the Black Sea. The workable level in Southeast Asia has been $430-435/mt CFR, while China has been still unwilling to pay even $430/mt CFR for non-Southeast Asian billets. This translates to $390/mt FOB maximum. If China continues its behaviour in actively buying billet, this may support suppliers in the future, according to one trading source. But for now, there is no support from Asia for ex-CIS prices.
The SteelOrbis daily reference price for ex-CIS billet has been lowered from $400/mt FOB to $395-398/mt FOB.