CIS-based steel mills have managed to get higher billet prices in new deals to North Africa and are aiming to reach another $5/mt in the next transactions.
A deal for 25,000 mt of ex-Ukraine billet has been signed to Libya at $405/mt CFR, including high grade extra, and for early December production. The base price in the deal is at $382/mt FOB. Sources estimate the sale as the equivalent to $375/mt FOB for the regular shipment term currently available in the market. In addition, another Ukrainian mill has sold 15,000 mt of billet for end-December production at $400/mt CFR to Algeria, equivalent to $375/mt FOB. As a result, the SteelOrbis reference price has increased by $7.5/mt since late last week to $375/mt FOB.
“Prices have already reached $375/mt FOB. A lower level is impossible for buyers and now suppliers are trying to achieve $380/mt FOB,” a trader told SteelOrbis. Offers from CIS-based mills have been heard from $380/mt FOB up to $390/mt FOB for production mostly in the second half of December.
Demand from the other North African customers has been limited so far. Offers to Tunisia have been heard at slightly below $400/mt CFR ($375/mt FOB). Trading in Egypt is still slow as bids have been far from current offers with the gap reaching $20/mt. However, “if the rebar price increase is accepted in the market [of Egypt], it will support the billet segment,” a trader said.
In Turkey, offers from the CIS have been at $395-405/mt CFR ($380-390/mt FOB), which in theory is acceptable, but mostly for prompt shipments and in orders from re-rollers. Steel mills mostly prefer to concentrate on the scrap restocking for now.