CIS billet prices keep on rising

Posted on 11 February 2019

Source: Kallanish

CIS billet prices continue to increase, having reached $450/tonne fob Black Sea for concluded deals, with mainstream mills' offer indications now at $450-460/t fob, Kallanish learns from market participants.

A Russian company sold a vessel of billet to the Middle East at this level, the first one in several months, indicating the region's producers are gearing up to roll more rebar in anticipation of rising demand. The same producer also sold billet to Turkey at a slightly lower price. Turkey’s appetite for imported billet appears to be increasing too, with enquiries coming in and tentative discussions taking place over business at $445-450/t fob Black Sea levels, traders say.

Turkish mills are counting on rebar demand from Asia and Southeast Asia skyrocketing next week, when markets reopen after the two-week Spring Festival break. Offers are already $40-50/t up on last week, traders note, with Singapore offered rebar at $525/t cfr theoretical weight, and South Asia at $540/t cfr actual weight, for very large tonnages.

Turkish billet is offered at $470-480/t fob, and some traders say there are some bookings, albeit of small, hand-to-mouth volumes, from countries likely affected by Vale's iron ore output cuts. 

A Ukrainian scrap-fed mill closed its Wednesday tender at $437/t fob with a small prepayment, equating to around $445/t fob Black Sea letter of credit payment terms.


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