Still strong demand for construction steel in China and an increase in local rebar and billet prices have supported foreign billet sellers. In particular, lately most CIS-based producers have been targeting China. A few large cargoes were sold last week and a fresh deal has been signed recently, pushing prices up sharply.
A deal for 40,000 mt of Russian billet was done at around $380/mt CFR China or about $350/mt FOB last week. Moreover, there has been information in the market about another sale from the Black Sea region of ex-Ukraine billet at $375-380/mt CFR ($348/mt FOB on average) last week.
But this week offers have increased to $390/mt CFR China and above or $360/mt FOB minimum. Chinese sources reported that a new deal has already been done for 40,000-50,000 mt of ex-Ukraine billet at $393/mt CFR China, which corresponds to $363-365/mt FOB, sources have said. Most large CIS-based steel mills have been focusing on China over the past weeks and have been barely offering to other sales destinations, seeking to grab all sales opportunities in the Far East, selling large lots. “There is no life outside China…All CIS mills are selling there,” an exporter said.
“The rest of the markets are slow and much below,” a trader told SteelOrbis. Offers for ex-CIS billet from smaller suppliers have been heard at $350/mt FOB to Turkey this week, but prices from major mills would be at least $5-10/mt higher.
The SteelOrbis daily reference price for ex-CIS billet has increased by $10-15/mt since last week to $355-365/mt FOB.