Prices for ex-CIS billet prices have been under pressure this week as the majority of buyers have taken a wait-and-see position, expecting prices to decline after the sharp unexpected drop in the scrap segment, SteelOrbis has learned from market sources.
The number of offers has been limited from large mills, while some of them have not changed their official offers from $590-600/mt FOB, but this has not been assessed as reasonable in the current market conditions. Most large mills from Ukraine and Russia have decided to cut offers to $575-580/mt FOB on Wednesday, March 17, or just slightly above this. However, this is still high for most importers.
Some rare bids from Turkey have been heard at $580-585/mt CFR, translating to $562-567/mt FOB. The sellers have not been ready to drop prices to this level for now, but most sources agree that, with ex-Europe scrap prices already fallen to below $430/mt CFR, the ex-CIS billet price level should be not above $570/mt FOB.
Demand is expected from Latin America and East Africa, but no firm bids have been heard for now. “No one is buying now. The prices decreased artificially, but there is no market now,” a trader said.
Buyers from the GCC have not been in the market for CIS billet purchases as freight has gone up to $50/mt.
“Sales will start not earlier than next week,” a seller said.
In Southeast Asia, billet from Russia’s Far East region has been reportedly sold at $600-605/mt CFR, to the Philippines in particular. Producers from the Black Sea region have not been interested in sales to Asia due to the increased freight, which is $50/mt or above.
The SteelOrbis reference price for ex-CIS billet has been lowered by $5/mt to $575/mt FOB Black Sea.