Ex-Russia billet prices soften ahead of holidays due to drop in demand and lower bids

Friday, 22 December 2023 15:52:12 (GMT+3)   |   Istanbul
       

Prices for ex-Russia billet have softened further by the end of the week due to absence of interest in buying in Turkey and weaker local sales in Russia. It is expected that in the coming two weeks there will be lack of changes and activity in the market due to holidays.

The tradable level of ex-Russia billet has been assessed at $530-535/mt CFR in Turkey, which translates to around $505/mt FOB. But the level has been indicative lately as almost no firm bids have been heard in the market. There has been talks in the market about a sale of 20,000 mt of billets at $532/mt CFR Iskenderun, but the information has remained unconfirmed by the time of publication and some sources believe it could be Iranian material.

Apart from Turkey, news about sales to Egypt have emerged this week. In particular, 20,000-25,000 mt of ex-Russia billet have been rumored to be sold at $550/mt CFR for the second half of January shipment, which is equivalent to $510/mt on FOB basis. However, some sources claimed this was mainly for wire rod grade billet. “Wire rod grade billet price is at least $10 per ton higher than 3 SP,” a source said, adding that buyers will not pay above $540/mt CFR for base billets. Nevertheless, some sources said that the sales of the mentioned tonnage have not been finalized yet as buyers are waiting for further discounts. “The market has reeled down – this is obvious. In Russia local sales departments claim, that they cannot sell January production [of longs] in the volumes they initially planned. Turkish buyers are also left the market,” a trader said.

The SteelObris reference price for ex-Russia billet has been settled at $500-510/mt FOB, down by $5/mt over a day and $8.5/mt over the week.


Tags: Billet Semis Russia CIS 

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