Posted on 20 Apr 2021
The price of billet in the Black Sea export market remained stable in the past week after reaching $600/tonne fob just over a week ago, Kallanish notes. Participants describe the market as stable and well balanced on supply and demand, with mills selling June casting volumes at a considerable pace.
China's initial demand has pegged CIS billet prices at the $600/t fob level with some sales, lending support for consolidation at this level, but active demand has subsided somewhat towards the end of last week. It was replaced, however, with Latin America, which, according to various sources, booked in excess of 50,000t of CIS origin billet, at $600-605/t fob base. Considering past bookings and the volume of enquiries in the market, some traders estimate the region's buyers are still in the market for at least another large billet lot from June casting books.
Although demand in China is less active, ASEAN regional buyers were paying $645-655/t cfr last week, and the market has been described as well balanced. Offers have increased to $650-665/t cfr depending on destination this week, with more sales expected, as demand for long products is rising, pushing up prices, although at a slower pace than in the flat products segment, sources note.
Turkey remains on the fence, with no new enquiries heard last week, and likely to first accomplish its June casting bookings in the short sea market from the Russian south. Traders estimate working price levels for billet imports at not higher than $620/t cfr, even as Turkish rebar demand and prices are slowly rising.
CIS mills continue to indicate $600-610/t fob Black Sea for June-casting billet, and slightly higher for remaining May volumes, as lead times shorten, freight rates continue to normalise, amid steady demand.
Source:Kallanish
