Offers of steel billet to foreign customers from the Commonwealth of Independent States (CIS) region had gone up by the end of this week following the continuing uptrend in the scrap sector, Fastmarkets heard on Friday August 7.
But trading activity was limited, even though some customers accepted the higher prices.
Fastmarkets’ steel billet index, export, fob Black Sea, CIS, was $404 per tonne on August 7, up by $5 per tonne day on day.
Recent offers of CIS billet were heard at $410 per tonne fob, against $400-405 per tonne earlier in the week, because of increased scrap costs.
***Steel scrap index
Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was calculated at $277.73 per tonne on Friday, up by $0.57 per tonne day on day and by $5.64 per tonne week on week.
New billet offers were considered too high by market participants.
In general, trading sources said that the workable price for CIS-origin billet was within the range of $400-405 per tonne fob Black Sea on Friday.
In the middle of the week, a cargo of Russia-origin billet was reported sold to a trading company at $400-402 per tonne fob Black Sea.
***Billet cargo to other countries
A compatriot mill was heard to have sold a cargo to the north of Turkey at $412 per tonne cfr, which would net back to around $400 per tonne fob Black Sea. Market participants also discussed a cargo of Belarus-origin billet being sold at $404-405 per tonne fob Black Sea this week, but the details of the deal could not be confirmed at the time of publication. In North Africa, customers were largely quiet.
One trading source reported a sale of CIS billet to Tunisia at $402 per tonne fob this week, while sources on the customers’ side said that the market was quiet, with offers within the range of $420-430 per tonne cfr, or $400-405 per tonne fob, depending on the tonnage.
In Egypt, trading activity was limited due to offer-bid mismatch. Recent offers of CIS-origin billet heard in the country were heard at $415-425 per tonne cfr ($395-405 per tonne fob Black Sea) although bids were rare, and did not exceed $405 per tonne cfr ($385 per tonne fob).
In the Gulf Cooperation Council, no fresh deals were heard done because market participants there were holding back in the first half of the week due to a religious holiday.
In China, customers were said to be in talks with a Russian supplier to ship material from the northern country’s Far East ports at around $430 per tonne cfr. There was no confirmation of a contract being signed at the time of publication, however.
For a seller shipping from the Black Sea basin, this price would not be workable because it would be equivalent to just $385-390 per tonne fob.
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