The Black Sea billet market has posted small changes ahead of the holiday season as suppliers are optimistic for sales in early 2024 and have not wanted to cut prices even though bids have been lower.
The SteelOrbis reference price for ex-Russia billet has remained at $500-510/mt FOB Black Sea, which reflects the lowest tradable prices. Ex-Donbass billet can be booked at $505-510/mt FOB, though some mills are insisting on offers at $515/mt FOB. “Scrap has fallen, so the Turks will not agree to anything above $525/mt CFR [translating to $500/mt FOB],” a trader said. Another source has also confirmed that bids to Turkey have dropped to $520/mt CFR and below for Russian and Donbass material. The tradable level for ex-Russia billet was at $530-535/mt CFR in Turkey last week.
“Russian billet exporters have suspended sales, waiting for “a booming market” by the end of January-early February. Abinks is buying all possible billet in the local market for further rolling to rebar and wire rod for further export,” another trader said. However, expectations of buyers in the major sales destinations Turkey and Egypt are not so optimistic.
After sales of Russian billet to Egypt at $550/mt CFR last week, there have been no new deals and market sources doubt that prices will reach $560/mt CFR and above before February, as earlier targeted by sellers.