The Latin American market continued to render support to CIS billet exporters with a second deal to the region reported during the week to Friday August 27. The price of the second one was, however, lower than the first.
A cargo of 35,000 tonnes of Ukraine-origin billet with increased manganese content was sold to Latin America at $685 per tonne cfr. Sources said the price for basic grade would be equivalent to $605 per tonne fob Black Sea.
This is $5 per tonne lower than for a completed deal to the region earlier in the week.
“This is a good price for the current market conditions,” a Russia-based producer told Fastmarkets, adding that there were no other destinations ready to accept a similar price.
“Freight to China soared to $100 per tonne today because of the slower work at local ports due to more thorough inspections for Covid-19,” the producer said.
Most recent bids for import billet from China were within the range of $670-675 per tonne cfr. As such, the fob-basis price for cargoes from the Black Sea basin have the potential to reach $570-575 per tonne fob, which is far from the $615-620 per tonne fob sought by large CIS mills.
Turkish customers were seeking prices below $630 per tonne cfr ($600 per tonne fob) for CIS-origin billet, considering that domestic billet was traded at $638-643 per tonne ex-works during the week.
As such, Fastmarkets’ calculation of its daily steel billet index, export, fob Black Sea, CIS dropped by $2 per tonne day on day to $605 per tonne fob Black Sea.