Offers prices for ex-CIS billet from the Black Sea region have continued to increase, following a few deals at higher prices to Turkey. Nevertheless, customers apart from Turkey, have been reluctant to respond to the higher ex-CIS price level.
According to sources, two steel producers from Turkey have bought ex-Russia billet recently. One of them purchased 10,000-20,000 mt of rebar grade billet from a trader at $508-510/mt CFR, while another mill purchased 10,000 mt of wire rod grade billet at $509/mt CFR slightly earlier. The average FOB base price level in these deals has been assessed by market sources at $490/mt FOB, SteelOrbis has learned. In the previous bookings done about a week before, prices were at $470-475/mt FOB. “Prices have exceeded $480/mt FOB and we are waiting for $495-500/mt FOB in the near future,” the Russian exporter said on Monday this week.
Following these contracts and seeing further rises in rebar and billet prices in Turkey, most suppliers from Russia, Ukraine and Belarus have increased offers to $495-510/mt FOB. Some producers have not voiced prices yet and will do so in the middle of the week. The uptrend is supported by limited supply volumes and the increases in the Turkish market.
Today, Tuesday, December 1, information about another deal for Russian billet to Turkey at around $500/mt FOB has emerged in the market, with sources saying it was for rebar grade billet, but the details have not been disclosed by the time of publication.
Nevertheless, there have been no signs of acceptance of the current high prices level from the CIS in other markets rather than Turkey. “For now, there are no chances for trades except for Turkey or traders’ business,” a source said. “If customers want to buy, they have to adjust,” another trader said.
The bid prices from billet customers in North Africa have been at $480-490/mt CFR maximum, far from sellers’ asking prices. The producer in Algeria has canceled its billet tender recently due to very high production costs, SteelOrbis has learned.
In Southeast Asia, the latest sales of a producer in Russia’s Far East region have been heard at $505-510/mt CFR, up by $10/mt compared to the previous week. A position cargo of ex-Black Sea billet has been offered at $515/mt CFR to Asia, according to sources. But this has been assessed as an exception by market sources as even this level translates to just $475/mt FOB Black Sea.
The SteelOrbis reference price was increased to $490/mt FOB on Monday, up by $10/mt from the Friday’s level and reached $490-500/mt FOB on Tuesday. Market sources are waiting for more billet deals to different market destinations for price levels to be settled further.