Higher demand for ex-CIS billet in Africa and some improvement in Latin America has provided support for prices. Overall sentiment in the CIS market has improved also owing to some increase in the scrap segment.
The SteelOrbis reference price has been increased by $3.5/mt on average from last week to $410-415/mt FOB, based on the latest deals. A cargo of 20,000 mt of ex-Ukraine billet has been sold at $415/mt FOB to East Africa (according to sources, to Ethiopia). Also, there has been information that some smaller tonnage of less than 10,000 mt of ex-Russia billet has also been booked to this destination at $415/mt FOB for wire rod grade, which translates to $410-412/mt FOB base. These deals have not been entirely confirmed by sellers.
A Russian producer has booked 10,000 mt of billet to Africa at $410/mt FOB, though there has been no confirmation whether it was to East or North Africa. “Customers in North Africa will have to accept prices, but for now they are bidding mostly lower [at $400-405/mt FOB],” a source said. There have been rumours about a sale to Tunisia at $410-415/mt FOB, but without confirmation yet.
In addition, some tonnage from Russia has been booked to Latin America also in the range of $410-415/mt FOB for base, SteelOrbis has learned.
Some traders said that bids from some customers have not increased much above $400/mt FOB yet, but positive moves in the scrap segment in Turkey have provided some support. However, billet bids from Turkey itself are mainly in the range of $400-410/mt CFR with an estimated freight of $15/mt.
The negotiations for ex-CIS billet have continued in the GCC for at least three large cargoes of 40,000-50,000 mt of billet each. Offers have been heard at $410-415/mt FOB.
“We are going to increase prices to $420/mt FOB as the raw materials market is stronger,” a Russian producer told SteelOrbis on Thursday.
