The uptrend has become more visible in ex-CIS billet prices after the major suppliers increased offers further compared to the middle of this week. Moreover, buyers have started to come back to the market at the higher price levels having already been fixed in some deals.
Most major CIS-based mills have increased offers to $550-560/mt FOB, while earlier this week the range was $540-550/mt FOB. It is still possible to get an offer at below $550/mt FOB from non-leading sellers, but “it is already hard to achieve $540/mt FOB now,” a source said.
Some 5,000 mt of ex-Ukraine billet have reportedly been traded at $540/mt FOB to East Africa, according to sources, which is $10-15/mt higher than the previous tradable value. Also, there is information about traders’ purchases at even higher levels, closer to $550/mt FOB, which, however, has not been confirmed by the time of publication. “Producers are excited and are asking $550-560/mt FOB. Traders are ready to buy at $540/mt FOB,” a market source said.
There are more enquiries for ex-CIS billet from East Africa and West Africa, while negotiations are also continuing with customers in Latin America.
Turkish importers are assessing the situation. With the current higher scrap prices, market participants estimate the workable price level at $545-550/mt CFR. But there is a problem in achieving this level as suppliers are offering higher. Demand for billet is expected to improve next week and bids are going to improve as well.
The SteelOrbis reference price for ex-CIS billet has increased to $540/mt FOB Black Sea, up by $10/mt from the level on February 10.