CIS-based steel billet producers have managed to sell at higher price levels this week, mostly to traders who have decided to restock. At the same time, the uptrend in the Far East market has made offers from the Black Sea region almost similar to prices from other suppliers and sizable deals are expected from the Black Sea to Asia soon.
Deal prices for ex-CIS billet have increased by $5/mt to $380-385/mt FOB Black Sea this week, SteelOrbis has learned, with at least four deals done in this range for 10,000-20,000 mt each. “Traders started to take positions. They are the most active now,” a source said.
Mills have been insisting on offers not below $385/mt FOB for January shipment.
Last week, buyers from North Africa were the most active in purchases of ex-CIS billet, with deals in the range of $400-406/mt CFR. This week, the workable level has moved to $410/mt CFR North Africa. Demand from Turkey has been limited, as the gap between local and import prices narrowed and rebar quotations have been almost stable.
At the same time, some interest may come from the GCC and Asia, sources said. “There are a number of negotiations in Asia. No one wants to go below $385/mt FOB. A lot of billet is needed there,” a CIS-based producer told SteelOrbis. An Asian trader confirmed that there has been a cargo from the Black Sea offered at $385-387/mt FOB to China and the Philippines, while the freight is assessed at about $40/mt or slightly below, sources said, which makes the CFR price at $425/mt CFR. Though there have been no deals from the Black Sea to Asia yet, they are expected to be heard in the near future. China purchased more than 100,000 mt of ex-Southeast Asia billet mostly at $415/mt CFR last week.