Billet exporters from the CIS have remained bullish and have increased their offers further, following the recent further hike in scrap prices and higher billet deals to Turkey. The bullishness in the Chinese market is also an addition to the positive sentiment in the market.
A contract for 10,000 mt of 3SP Ukrainian billet has been booked to Turkey at $595/mt CFR, up by $7/mt compared to the previous contract. According to sources, this deal translates to $577-578/mt FOB with the freight assessed at $17-18/mt in this case. Moreover, for now the tradable level for the Turkish market is at $600/mt CFR, sources have said, with reports of some sale at this level, which has not been confirmed so far.
Sources reported that the previous deals from CIS-based mills were done at $560-570/mt FOB to Turkey and to traders. But, for now, the main mills in the CIS are not offering anything below $600/mt CFR or $575-580/mt FOB.
Offers from mills from the CIS to East Africa have been heard at $590-595/mt FOB without contracts so far. To North Africa, the price from a trader has been heard at the equivalent to $580-585/mt FOB. A supplier from Belarus has been ready to deal at $585/mt FOB. One of the Russian suppliers has already announced an offer at $600/mt FOB.
In the Asian market, offers from Russia’s Far East region are at $600/mt CFR, with one deal already signed at this level. The tradable value for Russian billet in China is at about $580-585/mt CFR, according to sources, as it is subject to import duty.
The SteelOrbis reference price for ex-CIS billet has increased to by $5-10/mt today, February 25, to $575-585/mt FOB Black Sea, with a midpoint at $580/mt FOB.