Russian billet suppliers have been attempting price increases amid the appreciation of the local currency and seeing previous rises in scrap prices in Turkey. However, Turkish buyers have been reluctant to accept higher billet prices, at least so far, though, together with Russian offers, Asian quotations have also increased compared to last week.
The SteelOrbis reference price for ex-Russia billet has increased to $435-440/mt FOB Black Sea, with the midpoint at $437.5/mt FOB, rising by $7.5/mt on average.
Most offers seen in Turkey for ex-Russia billet are above $460/mt CFR Turkey, though some may agree on this level, while last week the highest workable level was at $450/mt CFR. “It seems that, with a lack of scrap supply [locally] and with the ruble’s exchange rate, suppliers will target above $460/mt CFR. Less than $460/mt CFR is possible only from Donbass, I think,” a Turkey-based source said. The Russian currency has appreciated significantly lately, and this is one of the main reasons for the price increase. Today, February 19, the exchange rate has come to $1= RUB 89.8, while it was at $1 = RUB 94 a week ago on February 12 and the highest level was $1 = RUB 100.7 early this month. “Sales from Russia are fully halted now as there is no consensus with customers regarding the prices,” a trading source said.
Offers for Asian origins have also been on the rise in the Turkish market. The latest ex-China billet prices have been reported at close to $478/mt CFR, versus $475/mt CFR early this week and $473/mt CFR at the lowest last week. Ex-Indonesia billet prices may be slightly lower than Chinese prices, but also not below $470/mt CFR, which is not workable for Turkish buyers at the moment.
After sales of ex-Malaysia billet at $485/mt CFR on average for late February and March shipment, there has been a rumour about a trade at $482/mt CFR, which has been denied by most market sources as this level is too low for duty-free Malaysian origin.
