Sentiments in the ex-CIS billet market have slightly declined after the holidays as trading activity has remained subdued with major customers bidding at low levels. Offers from major mills have been heard at $410-415/mt FOB, while customers are targeting mainly $400-405/mt FOB, SteelOrbis has learned.
CIS-based mills have restarted negotiations with North African buyers, in Algeria in particular. Before the holidays, a deal for 10,000 mt was done at $430/mt CFR or slightly higher, which corresponds to $400-405/mt FOB. Customers can pay a slightly higher price of about $407-408/mt FOB when asking for an earlier shipment period, a trader said. Nevertheless, the price will still be lower than before as a number of deals to traders and end-users were heard at $410/mt FOB in late December. Moreover, it is possible that producers will have to give $400-405/mt FOB for March shipment billet, according to market sources.
A deal for a small volume from a first-tier steel mill from the CIS has been signed at $418/mt FOB this week, but the sale destination is unknown and the price level has not been included in the above range.
A customer in the GCC market has also collected offers, looking for a purchase of 50,000 mt.
Turkish buyers have received offers for ex-CIS billet at $420-430/mt CFR from mills and traders, but demand has been slack so far. The lack of a clear direction in the scrap market has limited the movement of ex-CIS billet prices.
The SteelOrbis daily reference price for ex-CIS billet is now at $405-408/mt FOB, versus $410/mt FOB in late December.