Prices for ex-CIS billet have been under strong pressure early this week as import scrap prices in Turkey have dropped by more than $30/mt from last week. All major billet importers have been waiting to receive discounts for billet before entering negotiations.
The latest confirmed deal was done at $595/mt FOB for ex-CIS billet to Turkey for 5,000 mt, according to sources, which translates to about $610/mt CFR. But after the scrap price fall, Turkish customers will ask $585-590/mt CFR (or $570-575/mt on FOB basis), sources told SteelOrbis.
Most CIS-based suppliers have been taking a pause to evaluate the new market conditions. On Monday, offers from the major Russian and Ukrainian mills were heard at $590-610/mt FOB. “The price of $595/mt FOB is pretty comfortable for us,” one producer said. But this price is not an attractive buying level for traders, who considered buying at $585-590/mt FOB earlier, but decided to wait for further price decreases. According to sources, some large CIS-based mills are not in a hurry to sell right now and may nominally hold offer price levels at around $600/mt FOB and above in the near future.
The SteelOrbis reference price for ex-CIS billet has been lowered by $7.5/mt today, January 19, and is down $10/mt since last Friday, coming to $585-590/mt FOB Black Sea.