CIS-based steel mills have managed to increase prices further after a hike early this week. While there have been no reports about deals to China, where sentiment has improved much this week, some deals for ex-CIS billet at high price levels have been heard to the Mediterranean.
A contract from one of the major Ukrainian mills has been signed at around $390/mt CFR for the wire rod quality of billets, which translates to $373/mt FOB base.
Moreover, two deals for 20,000 mt of ex-CIS billet each have been traded to Algeria at $373-375/mt FOB, according to sources, and though it has not been confirmed by the buyer’s side, market sources said that it could not have been sold to the major steel mills in the country. The sales have been assessed as successful deals as previous offers at $395/mt CFR to North Africa from Ukraine, which corresponds to $370-375/mt FOB, have been rejected by the buyers.
There have been still no information about fresh deals from the CIS to China and futures in China have posted some declines on Friday. In particular, rebar futures at Shanghai Future Exchange have lost RMB 30/mt ($4.3/mt) over the day. On Thursday, bids have been at up to $410/mt CFR China, which translates to $370/mt FOB Black Sea.
SteelOrbis has increased its daily reference price for ex-CIS billet from $370/mt FOB to $370-375/mt FOB.