Billet producers from the Commonwealth of Independent States increased offers for foreign customers this week despite the lack of inquiries from typical customers.
Early in the week, market participants reported offers within the range of $650-660 per tonne fob Black Sea, but by the end of the week those had increased to $660-665 per tonne fob, while some producers mentioned even $670 per tonne fob.
Market participants said that higher offers were due to the limited availability of material from Russian producers that are equipped with electric-arc furnaces.
There were, however, not many markets ready to accept higher prices for CIS-origin material.
Market participants said that customers in China accepted $720-725 per tonne cfr for material from the Association of South East Asian Nations (Asean) region early this week, which would correspond to $650-655 per tonne fob for cargoes shipped from the Black Sea basin.
One trading source said that no deals from the CIS region have been done lately, because mills did not have large volumes left and China is traditionally looking for big tonnages.
Another source said that a Russian producer offered billet on Wednesday July 28 at $725 per tonne cfr for material to be shipped from Far East ports of the country.
Turkish customers returned to the market after a week-long religious holiday last week. The sentiment in the market was negative due to the lowering import scrap prices.
Turkish deep-sea scrap import prices fell sharply on Wednesday, with a United States-origin cargo heard sold at lower level.
Fastmarkets’ index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey was calculated at $475.96 per tonne on July 28, down by $8.60 per tonne day on day.
Offers of CIS-origin billet from traders and mills were heard in the country within the range of $675-685 per tonne cfr, which would net back to $650-655 per tonne fob Black Sea.
Meanwhile, bids from customers in Turkey were heard not above $655 per tonne cfr ($625-630 per tonne fob Black Sea).
Local billet was traded in the country within the range of $677-682 per tonne ex-works this week.
As such, Fastmarkets’ calculation of its daily steel billet index, export, fob Black Sea, CIS was $650 per tonne on Thursday July 29, up by $2 per tonne day on day.
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