CIS-based billet exporters have been insisting on higher prices this week after the latest increase in scrap prices in Turkey last week. And new deals for billet have been disclosed at a higher price level recently, reflecting positive sentiment. But demand can still hardly be called strong.
A booking for 30,000 mt of billet from one of the major Ukrainian producers has been reported as having been done to Colombia at $550/mt FOB base last week. Demand is expected to continue from Latin America, and so a deal to this destination has not been a surprise. The price level is also more or less expected, as last week a deal to Africa was signed at $540/mt FOB, but all major producers insisted at prices not below $550/mt FOB.
In addition, a contract from another Ukrainian seller has been heard at $555/mt FOB for the Turkish market, but most probably for wire rod grade, according to sources, so the base price corresponds to $545-550/mt FOB. Overall demand for import billet from Turkey has not improved much yet. “Enquiries are very limited. We are even not exchanging prices. Scrap is much cheaper [for Turkish mills] now,” a seller from the CIS told SteelOrbis. A number of sources estimate the workable level at $560-565/mt CFR Turkey or $545-550/mt FOB.
Most offers, coming from the CIS, are still at $550-560/mt FOB, reported last week, but more deals are expected for a clearer market situation.
The SteelOrbis reference price for ex-CIS billet has increased by $7.5/mt on average from late last week to $545-550/mt FOB Black Sea.