Russian mills have remained interested in sales of billets to Asia and, with a lack of demand elsewhere in the world, except Turkey, they have still been active in cutting prices.
Taiwan has continued to purchase ex-Russia billet with a new deal for a sizable volume done at $650/mt CFR. This is much below a contract signed at $745/mt CFR for vanadium-added billet last week, which is $730/mt CFR base. So, the deal price for ex-Russia material to Taiwan has fallen by $80/mt. There is information that the mill managed to sell with LC payment terms through a bank in the Middle East.
The seller is the largest Russian mill, which usually sells to Asia from ports in Russia’s Far East. The company cut prices to Taiwan to the level of the last offer to China to attract the customer.
As SteelOrbis reported earlier this week, a contract of ex-Russia billet to the Philippines was done at $700/mt CFR last week. But most sources agree that, with falling prices in China and Taiwan as well as low demand in Southeast Asia, prices will break this level next week. One large Asian trader is still offering ex-Russia billet at above $700/mt CFR to Southeast Asia, but this could be due mainly to the deal signed at a higher level with the mill earlier.