Posted on 25 Nov 2020
Black Sea billet prices are strong, but their rise has not been as fast as for other products. Traders expect billet to reach around $500/tonne in this round of sales, for January/February-loading material, as supply is limited to only the CIS and Turkey.
Turkey is itself in the market for billet, and demand is continuing to reawaken in traditional importing regions, traders tell Kallanish.
January-loading material is practically sold out, but February loading is not quite offered yet, sources say. Turkish import prices for 125mm cross section billet are at $490/t cfr, with some deals having taken place in line with domestic prices.
Two lots – one small and one large – of billet were sold in Turkey at $482/t and $480/t ex-works on Monday, with offers now at $490/t ex-works/fob, in line with import prices. Offers range from $465/t fob to $500/t fob for CIS billet, depending on the supplier, tonnage and destination.
Turkey’s appetite is stoked by a relative shortage of billet, as non-traditional billet buyers who have captive billet supply are instead switching to producing slab on their universal casters. This is due to the flat products market booming in Turkey and slab import prices now being at $550-560/t cfr, in theory, as CIS suppliers are not actively offering slab still.
The lack of European and Brazilian billet, which would be in the market traditionally at this time of year, is adding to shortage and price pressure, while strong scrap is further supporting this, traders note.
Meanwhile, demand is also expected from Egypt, where domestic rebar prices have gained around $35/t over the weekend, another couple of traders reckon. Considering the lack of additional supply at the moment, this is sure to continue pushing Black Sea billet prices up, they say.
China is quiet at the moment, expectedly, traders observe. "Traditional buying markets are only now waking up, but China led this round of price increases, so its quiet stance is logical," a major trader says.
Source:Kallanish
