Prices for ex-CIS billet have dropped again early this week, following recent fall in scrap prices and still very low demand. Most suppliers have not been aggressive, but have been forced to cut prices to respond to the current market reality.
Rare offers from major mills have been heard at $350-355/mt FOB, while last week official offers were at $375-380/mt FOB. Some offers to North Africa have been heard even at $370/mt CFR, which corresponds to about $347/mt FOB. However, mots sources believe that this price level is not achievable any more. New deals for North Africa and Turkey are expected at $340-345/mt FOB. Import scrap prices in Turkey have dropped by $18/mt today, March 24, after a deal disclosed at $226/mt CFR, putting pressure on the billet segment.
CIS-based billet suppliers’ attention has been focused on the Chinese import market. Offers from different suppliers, including those from the Black Sea region, have been heard at $380-385/mt CFR China (approximately $345-355/mt FOB) recently. But the appetite for import billet in China has slowed down somewhat. Some traders have reported that bids are at $365-375/mt CFR and that the number of inquiries is lower. “Buying stopped a little after the futures slump [on Monday]. With lockdowns everywhere, I think the chances are slim,” an Asian trader told SteelOrbis. “It is more important at what level the import price is in China than FOB Black Sea now. $380/mt CFR is not workable anymore,” another major trader in the region said.
The SteelOrbis reference price for ex-CIS billet has declined by $10/mt today to $340-345/mt FOB.