Export prices for steel billet from CIS surged on Tuesday February 23, with several cargoes sold at higher prices to Turkey.
BILLET FROM CIS , Turkish customers ***
Turkish customers accepted price increases for billet because of the continuing uptrend in the sector, based on import scrap and local billet prices.
Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was calculated at $429.03 per tonne on February 22, up by $15.40 per tonne compared with Friday’s index.
And the daily index for steel scrap, HMS 1&2 (80:20 mix), United States origin, cfr Turkey, was $433.41 per tonne on the same day, up by $15.41 per tonne from Friday.
A trading source reported that recent domestic billet offers in Turkey had surged to $590-600 per tonne ex-works, against $570-575 per tonne ex-works heard at the end of last week.
Additionally, market participants reported an uptick in freight rates globally due to the rise in oil prices, unfavorable weather conditions and the reduced availability of vessels.
This meant that freight rates in the Black Sea basin to Turkey jumped to $20-28 per tonne, depending on the specific destination, from $15-20 per tonne earlier.
CIS suppliers ***
Despite this, CIS suppliers managed to achieve higher sales prices in Turkey.
A 10,000-tonne cargo of Russia-origin billet was reported sold at $582-583 per tonne cfr. This price would net back to $562-563 per tonne fob Black Sea, according to one market source.
Another mill sold a cargo of billet to Turkey’s Izmir region at $590 per tonne cfr, which would net back to $562-565 per tonne fob Black Sea, considering a freight cost of $25-28 per tonne.
CIS-origin billet ***
Last week, CIS-origin billet was traded to Turkey at $550-554 per tonne fob Black Sea.
Other than to Turkey, no fresh deals had been heard at the time of publication.
Market participants did hear of a large cargo of Ukraine-origin billet being sold to Peru this week, but this information could not be confirmed from the suppliers’ side at the time of publication.
Another supportive factor for CIS billet producers was growing interest in billet imports into China.
Although Black Sea suppliers remained uncompetitive in Asia, mills selling from ports in Russia’s Far East province increased their asking prices to $590-600 per tonne cfr, against deals at $560 per tonne cfr achieved in the Philippines last week. Current bids from Chinese customers were reported at $575-585 per tonne cfr.
Amid these supportive market conditions, Black Sea producers increased their billet offers to $570-580 per tonne fob Black Sea, against $560-570 per tonne fob heard at the end of last week.
Fastmarkets’ daily steel billet index, export, fob Black Sea, CIS, increased to $566 per tonne on Tuesday, up by $11 per tonne day on day.
این مطلب بدون برچسب می باشد.