Russian suppliers have continued to increase prices for billets in the export market and they have managed to achieve higher levels in deals to Turkey, supported by the hikes seen in the local market in Turkey and increased scrap quotations. Further rises are doubtful, SteelOrbis learned from the market on February 3.
The reference price for ex-Russia billet has settled at $575-580/mt FOB Black Sea by the end of this week, with the midpoint at $577.5/mt FOB, up by $5-10/mt from yesterday and up $17.5/mt over the past week. Moreover, the latest offers from Russia have been coming at up to $590/mt FOB.
The main support has come from the Turkish market, where the rising trend in the scrap segment has pushed up billet price ideas. A deal for 3,000 mt of ex-Russia billet was closed at $600/mt CFR on Thursday for March shipment, which is around $10-20/mt higher than the price from the same seller discussed earlier this week. “The market has accepted new prices,” a trader commented. This sale price translates to around $572-575/mt FOB.
In addition, another contract for 5,000 mt of ex-Russia billet has been rumored at $605/mt CFR for prompt shipment, but this has not been finally confirmed by the time of publication. “The Russians are offering $605/mt CFR in Turkey and they would achieve this level,” a Europe-based trader said.
The general range of import billet prices in Turkey has reached $595-605/mt CFR by the end of the week. The higher end of the range corresponds to sales with short lead times, while the lower end represents the tradable level for higher volumes.
In the domestic market for billet in Turkey, the latest deals for a total of 8,000 mt have been closed recently in the Iskenderun region at $660/mt ex-works, versus $648-651/mt ex-works earlier, SteelOrbis has learned. In the Marmara and Izmir regions, the offer levels are estimated at not lower than $650-655/mt ex-works, up $10/mt over the past week. However, no solid negotiations have been reported yet.
Russian suppliers have been offering at up to $620-630/mt CFR to North Africa this week, up from $600-610/mt CFR a week ago. But buyers’ price ideas are still lower, at $590-600/mt CFR at a maximum, according to sources.
In the Far East, the leading Russian mill has voiced new offers at $620/mt CFR Taiwan for April shipment. This is a sharp increase compared to the pre-holiday sales at $585/mt CFR to Taiwan. Customers are reluctant to accept new levels, as offers from traders for ex-Iran billets are at lower levels, at $600/mt CFR and below in the region.