Ex-CIS billet prices have continued to rally, increasing rapidly with most fresh offers coming closer to $500/mt FOB. The latest deals to Latin America have shown that some CIS-based producers have managed to fix the previous higher level and this has allowed them to raise prices again, though acceptance in the majority of trade destinations is questionable.
According to market sources, the two largest Ukranian steel producers have managed to sell at least one cargo each at $460/mt FOB and $464/mt FOB base to Latin America lately, though these have not been finally confirmed by the time of publication. The sales destinations have been heard to be the Dominican Republic and Colombia. Some sources have reported that ex-CIS billet has been sold at $450-455/mt FOB base, but the period when the deals were done remains unknown.
“Now the new offers are at $500/mt FOB. Rather, no one offers anything for the moment,” a trading source said. Offers from large CIS-based mills have been at $480-500/mt FOB mainly, but sources said that this level has been mainly for testing the market. Some small Russian suppliers have been ready to give $460/mt FOB, but this was more as an exception.
The sharp rises in scrap prices in Turkey over the past week and positive steel prices have contributed to the recent hike in ex-CIS billet prices. For now, the local offer price level in Iskenderun has been increased by $10/mt to $490/mt ex-works and the market is waiting for the new prices from Kardemir, after which the workable level for imported billet may be clearer.
In the Middle East, buying activity has been quiet and sources have reported that importers have not been ready to accept such price rises. The workable price level in Southeast Asia has been at $490/mt CFR, which translates to $445-450/mt FOB Black Sea - not attractive for CIS-based suppliers.
The SteelOrbis daily reference price for ex-CIS billet has been set at $460-464/mt FOB amid the latest disclosed deals, which is up by $2/mt from the previous level, which was reflecting the suppliers’ target and some bids, but not the deals.