The positions of CIS-based square billet exporters remain vulnerable, since the further downturn in the scrap segment and the lack of orders leaves them no chance to avoid a further price decrease.
A 30,000 mt lot of 130 mm x 130 mm billet has been traded recently by an ex-Ukraine mill at $585/mt CFR to Qatar, SteelOrbis has learned. The cargo is for March production. Taking into account the extras, freight and some additional costs, the deal level is calculated back to $535/mt FOB base. According to sources, while negotiating the buyer received offers from other large CIS-based producers within $540-545/mt FOB. SteelOrbis’ daily reference price for ex-CIS billet has been lowered to $530-540/mt FOB, down by $10/mt since late last week.
Currently, the workable level for ex-CIS billet is seen by most market players to be at $530-535/mt FOB and some large producers are expected to start offering within this range in order to attract large-sized orders. Some mills report that there is demand coming from Latin America and Africa. It is worth mentioning that Turkish buyers have not yet come back to the market with inquiries, taking into account the uncertain situation locally. “Longs are falling fast and basically there is no price for billet locally. So there is no workable level for imports either,” a large importer told SteelOrbis. One source reported an offer at $546/mt CFR Iskenderun, while another market player estimated potential offer prices to Turkey overall at $540-555/mt CFR depending on the region, the seller and the shipment term. The freight is estimated at $15/mt on average.