Market sentiment in the export market for CIS billet has become more positive. As the upturn in prices for Turkish billet and longs is picking up speed, CIS sellers are growing more assured they have overcome the downward price movement. Sellers in the Azov-Black Sea market are also supported by demand from Saudi Arabia, Turkey, Middle Eastern and some African countries. Nevertheless, few producers have managed to close sales at higher prices. Demand in the Far East has somewhat dropped, though occasional deals are being made. Buying in the Caspian region remains non-existent and is not expected to improve shortly.
This week CIS billet exporters have started offering January output from the Azov-Black Sea basin. In comparison with levels in early December, tags for semis from Ukrainian and Russian mills have gained on average $5-20/t. Moreover, bids from overseas buyers have reportedly grown to $575-580/t FOB Black Sea against $555-565/t FOB Black/Azov Sea a week ago.
However, some sellers are said to be ready to quote lower prices in deals for large quantities. Market players report Russian sellers are negotiating a sale of two lots of January billet (60,000 t in total) with Saudi Arabian customers at $575/t FOB Black Sea.
Under current conditions Elektrostal has sold a small lot of January square billet (5,000 t) to traders at a desired price – $575/t FOB Mariupol, $20/t up from the level of recent deals.
Metinvest International S.A. is also raising prices now, having sold the remainder of December output to Syria at $575/t FOB Black Sea. January square billet is available to foreign buyers at $580/t FOB Black Sea, but no deals at this level have been reported so far.
ArcelorMittal Kryvyi Rih has sold out its December output at $575/t FOB Black Sea and keeps prices for January material as high as $590/t FOB Black Sea at the moment. Although the supplier itself considers the level too high, it intends to reach it by the middle of the month already.
Belarus SW has sold 10,000 t of January material at $565/t FOB Black Sea (unchanged from deal prices in early December), after it got rid of 45,000 t of square billet last week.
Volga-FEST''s January volumes are still available in Black Sea ports due to difficulties with sales to Iran at the moment; prices for the material have increased by $10/t. Market players say, small lots have been sold at theese levels in Turkey.
This week a tender to sell Amurmetal’s square billet has been announced in the Far East again. Thus, 20,000 t of the company’s January square billet has been sold at $610/t FOB Vladivostok, $5-10/t up from two weeks ago.
The Caspian region has seen no deals due to low bids and new sanctions imposed by the international community, although there is demand for square billet there. As a result, Russian material is not offered in the region at the moment. However, Kazakhstan''s Casting has announced its December prices, cutting them to $580/t CPT ($590/t FOB Aktau), $15/t down. It is possible that the producer will cut output soon, as buyers are ready to accept only the prices by $15-20/t lower. KazFerroStal also offers its December material now, quoting $580/t FOB Aktau for it. At the same time, Aktau Foundry''s January square billet is available at $573-575/t CPT ($583-585/t FOB Aktau).
( Source: www.metalexpert-group.com )