Prices for ex-Black Sea billet have softened this week after previous slight rises due to relatively low bids from major markets and still limited trading except for prompt shipment deals, even though some Russian sellers have still been insisting on high offers. Moreover, the recent scrap price decrease in Turkey has made customers more cautious.
The SteelOrbis reference price for ex-Black Sea billet has softened by $5/mt since late last week to $510-515/mt FOB, with the midpoint at $512.5/mt FOB.
Four deals for a total of 20,000 mt of ex-Russia billet for prompt shipment have been concluded at $547-553/mt CFR to the Karabuk and Iskenderun regions. The price is relatively stable compared to the previous offers and deals for prompt shipment reported at $550-551/mt CFR. However, bids for ex-Russia billet for end-of-February shipment have softened to $540-545/mt CFR, translating to around $515/mt FOB. “We cannot sell at $550/mt CFR, which was targeted since last week. Buyers are pushing down [their ideas],” a trader said. The change in mood has been connected with the recent decline in scrap prices, with one European deal hitting $410/mt CFR.
Moreover, a few trading sources said that, even though the offer billet volume from Donbass, the Ukrainian territory occupied by Russian forces, is limited, the current tradable level is not above $510/mt FOB, against the previous offer at $512/mt FOB last week.
Offers for other origins of billets in Turkey have been relatively stable, though buyers are not ready to accept them anymore. A few cargoes of ex-Algeria billet have been offered by traders at $560-565/mt CFR, versus previous deals for 80,000 mt at $557-559/mt CFR. “I would say now the tradable level is $550-555/mt CFR. Some traders were fishing even lower at $545/mt CFR,” a Turkish trader said. Asian offers are rare and mainly at near $565/mt CFR.
In Egypt, some suppliers have decided to keep offers at high levels - at $560-570/mt CFR for Russian billet, which translates to $520-530/mt FOB, excluding freight and additional expenses. However, “the workable level for DWR grade billet, with 1.2-1.4 percent manganese, for Egypt is about $560-565/mt CFR, I think. But this grade is more expensive than 3SP by up to $10/mt,” a seller said. Last week, the reference price for 3SP billet in Egypt has been at $545-550/mt CFR.