Further prices increase for billet from Black Sea has been confirmed in a fresh deal to Latin America, which indicates strong market sentiments. Moreover, a further hike in the latest bids from China has provided support.
According to sources, a Ukrainian producer has sold 35,000 mt of billet to Peru at $430/mt FOB with confirmation from the market that this level is a base price without extras. A deal to Brazil from a Russian supplier was at $427/mt FOB, as SteelOrbis reported on Wednesday.
The deal price level to other destinations from mills was reported at $425/mt FOB to Africa and Southeast Asia, according to reports earlier this week, and no new transactions have been heard at these destinations yet. “Offers are all above $430/mt FOB from producers. We need to see more deals,” a trader said. Some mills have already increased their price ideas to $440/mt FOB and are watching the market.
The optimism of CIS-based exporters has been connected with the strong market in China. Chinese customers are still making enquiries and bids are going up rapidly. “We already have Chinese bids at $440/mt FOB. We have decided to watch the market a bit,” a producer told SteelOrbis. “Today China can give [bids at] $480/mt CFR,” another source said. The SteelOrbis reference price for billet from the CIS has been set at $430-435/mt FOB, up from $425-427/mt FOB on November 11.