The export market for billets from the CIS countries has quieted as some suppliers increased their offers, which was fueled by the growing interest of China in imported billets. Most buyers were left on the sidelines amid the ongoing Islamic holidays.
Bids from Ukrainian suppliers were at the level of USD 660-670 per tonne of Black Sea FOB. Some Russian supply indicators were lower, at $ 650-660 per tonne, but they were still too high for buyers in need of materials to be willing to pay. Despite the fact that there were no active bids on the market last week, based on the price of scrap metal in Turkey, the country’s interest rate for roll processing was estimated at about 660-670 dollars per ton, and the Tunisian rate at 670-680 dollars per tonne. one thousand francs. This returns to $ 640-645 per tonne on the Black Sea market, “given that freight rates will not rise again in the next few days,” says the trader.
Most buyers are limited by the price dynamics of rebar and wire rod, and it is difficult for them to find a billet at such prices. The upcoming duty on the export of ferrous metals from Russia has not yet led to an increase in prices, as partly assumed. However, some enterprises see the decline in production in China as a prequel to a particularly active fourth quarter, when demand for large batches of billets from the CIS countries may increase. This will also depend on freight rates, which are currently $ 70-80 per tonne from the Black Sea, but are expected to continue to rise throughout the year.
On the other hand, it is not known at what level the Chinese authorities will restrain domestic billet prices, which will immediately affect import appetite and prices. Last week, the Russian mill was selling billets to China from the Far East, but these sales could not be made from the Black Sea.
Market participants say the company scored $ 715-725 per tonne in China for its billet with October shipment, but some question this higher level as there is high availability of regional-origin offers at lower prices, $ 710-715 per ton. At the same time, most sources are confident that billet prices in China will soon reach and exceed this level.