The situation in the CIS billet segment has been somewhat complicated this week as no clear pricing has been set in the market. A lot of CIS-based producers either do not have much allocation or prefer not to give firm offers for the remaining February volumes. In the meantime, the workable price level has increased in some rare deals, supported by the significant hike in Turkey’s scrap market.
Last week, 30,000 mt of billet were sold to Peru at $550/mt FOB by a Ukrainian mill. However, this level is no longer considered workable. In the Black Sea region, the most recent deal was reported as being closed to the Turkish market for 10,000 mt at $570/mt FOB or $585/mt CFR from Russia. In the meantime, local prices in Turkey for billet have increased to $590-600/mt ex-works in most regions and the new import offers, although scarce, are reported at $590-605/mt CFR. Rare mills are in the market to sell nowadays, with indicative offer levels mainly from $580/mt to $600/mt FOB. “There is no volume and in a week the price will be even higher,” a trader told SteelOrbis.
In the Far East, the deal prices for billet from Russia have moved up once again. While late last week a regular lot was traded to South East Asia at $565-570/mt CFR, the most recent transaction has been closed for around 20,000 mt to the Philippines at $575/mt CFR, SteelOrbis has learned.