Prices for imported billet in the MENA region, in North African countries in particular, and also in Turkey, have reached a peak, according to market sources, and at the moment demand from end-users has been very slack, while traders have also refused to take positions, having a cautious or negative outlook.
Offers for Asian billets to Turkey or Egypt are still at $900/mt CFR minimum and up to $920/mt CFR, taking into account increased freight rates. In particular, ex-China offers have been at $780/mt FOB, but the latest sales of billet of this origin have been done to Southeast Asia, not the MENA region. Also, ex-ASEAN offers are still at $800-810/mt FOB, and are not workable in the MENA region. After the sale of ex-Indonesia billet at $950/mt CFR to Europe, there have been no reports of new trades.
“There is no demand for import billet in North Africa,” a Europe-based trader said, adding that the uncertainties have been aggravated by potential further freight cost increases as well as by exhausted credit lines. “I think the billet market has peaked, as well as scrap,” he said.
An offer for ex-Belarus billet to Egypt has been heard at $840/mt CFR this week, with not much interest from the buyers’ side. Also, ex-Russia prices are still at around $850-860/mt CFR in Turkey and Egypt. But “all these transportation issues and risks have caused trade with Russia to be at a standstill,” a source said. As reported earlier, despite sanctions, difficulties in payments and other problems, some ex-Russia deals were done to Turkey and Egypt last week, with all of them on CFR basis as buyers were trying to lower the huge risks. Though the FOB levels could not be finally specified due to rising freight rates and the extremely limited possibilities of finding a vessel for shipment from Russia, the SteelOrbis reference price for ex-Russia billet was calculated at $780-820/mt FOB since last Friday. It is based on deals done at CFR basis and taking into account a freight rate of at least $50/mt from the Black Sea.
