Russian billet suppliers have been trying to hold prices stable or even attempting some small rises despite buyers pushing for additional discounts. Stronger scrap prices in Turkey and continuing expectations of interest in billet in smaller volumes have prevented ex-Russia billet prices from softening further after the decline seen last week.
There has been a rumor that one of the main Russian exporters sold 50,000 mt of billets at $445-450/mt CFR, which is slightly below $450/mt CFR recorded in a few smaller deals reported a week ago. But this rumor has not been confirmed and most market sources have denied it, agreeing that the mentioned level is far below the mill’s target. A few buyers said that they got offers above $455/mt CFR this week to Turkey’s Black Sea region, while there is a rumor of a sale to Izmir with a higher freight rate. “They sold 40,000 mt with the sales price being approximately $455-460/mt CFR, but this was at least two weeks back. Now they want at least the same,” a Turkish source said.
Also, after the imposition of safeguard duty in Egypt, the tradable level for Russian billet to this destination is assessed at very low level - some buyers have been as low as $430-440/mt CFR in bids, while more reasonable levels are said to be at $450-460/mt CFR. “But with a $460/mt CFR price for Egypt, minus extras for wire rod grade of at least $10/mt and minus higher freight to Egypt compared to Turkey, this price which Egypt wants is impossible for the Russians. No one will even consider it,” a trader commented.
Asian suppliers have been out of the market lately, so they are not offering a lot of competition to Russian billet. The latest lowest level for Chinese billet was at $470/mt CFR or just a few dollars below, but Chinese exporters are on holiday during October 1-8. Ex-Indonesia indications are at $470-475/mt CFR.
The latest ex-Ukraine billet prices for Turkey were at $485-490/mt CFR.
