Offers for ex-Russia and ex-Donbass billets have indicated a further gradual improvement since late last week, following the recent increase in scrap prices in Turkey and somewhat limited availability as a number of suppliers are still assessing the market alternatives.
The SteelOrbis reference price for ex-Black Sea billet has settled at $512-517/mt FOB, with the midpoint at $514.5/mt FOB, increasing by $2/mt during the day and by $4.5/mt since last Friday. The most recent offer from the mill in Donbass has been voiced at the lower end of the current range, while the previous deal from the mill was at $508/mt FOB. Some Russian suppliers have been waiting for prices not below $515/mt FOB and claim they are not actively offering to Turkey at the moment.
Given the increased freight rates due to the winter, the current offers for ex-Black Sea billet to Turkey have been reported at $540/mt CFR and above, while only one source said that a few dollars below this level is possible. Billet offers for prompt shipment are still at around $550/mt CFR, so close to the latest deal for 3,000 mt done at $551/mt CFR Aliaga. Customers in Turkey are also taking their time and bids for late February shipments are still not above $530-535/mt CFR in the best case. One of the large Russian mills is expected to come to the market with new offers next week.
Availability of non-Russian/Donbass billets has been even less in Turkey. No firm offers have been reported on CFR basis from Asia, while the estimations have been at $565-570/mt CFR. “The Asians will sell to their regional market,” a trader said, with a few deals confirmed from an Indonesian mill to South Korea and Taiwan at $529-533/mt FOB. Also, an Algerian mill has held a tender for up to 80,000 mt of billets, but the results are still unknown by the time of publication. “I doubt they will achieve the number they want [above $530/mt FOB],” one international trader said. Bids from traders in this tender have been heard at below $525/mt FOB.
The tradable level for ex-Russia billet in Egypt for base 3SP billet has been at $550-555/mt CFR, just a little change from $550/mt CFR reported in late December. But for such grades as DWR500 or SAE1006, prices have been assessed at $10-15/mt higher.