The latest offers and workable price levels for ex-CIS billet have increased further amid gains in Turkey, which may open some opportunities for sales at higher prices. Moreover, the outlook is positive for the billet market in China after the resumption of tradıng after the holidays on May 6.
The SteelOrbis reference price for ex-CIS billet has risen by $12.5/mt on average to $625-630/mt FOB Black Sea, with the midpoint at $627.5/mt FOB.
The latest offers from some major CIS-based mills have been voiced at not below $630/mt FOB, versus $620/mt FOB and above previously. “$630/mt FOB is the target price. But prices will go up tomorrow for sure as China is coming back,” a source from the exporting side said, adding that the tradable level has already reached $625-630/mt FOB. The recent increase in tradable levels is linked to higher prices for scrap and local billet in Turkey. In the latest deals for HMS I/II 80:20 scrap, prices have broken the $470/mt CFR Turkey mark, $17.5/mt higher on average compared to the previous level. Moreover, local billet trading in Turkey has accelerated with deals at $640-650/mt ex-works first and rising to $660/mt ex-works later, while according to the most recent information there has already been a deal at $670/mt ex-works. As a result, the workable level for ex-CIS billet in Turkey has already hit $650/mt CFR, which translates to $625-630/mt FOB. And further rise in the market is expected by the end of this week, market sources have said.
One of the major Ukrainian producers is going to start offering at $645/mt FOB, SteelOrbis has learned. Other mills are also evaluating the market, but “no one will sell until new prices become clear in China,” a Russian source said. Before the holidays, the tradable price level in China was at $675-685/mt CFR, but some Asian suppliers have already started to voice offers at above $700/mt CFR. “We are sure that the price in China will reach $700/mt CFR,” a source said. This level corresponds to around $640-645/mt FOB Black Sea.