CIS billet exporters intend to push prices up, citing limited supply of
semis in the market. Though market operators are not sure whether the
long-lasting downtrend will be replaced by price growth, deals on some routes
have been already signed at higher levels.
Most traders have corrected prices for CIS billet upwards in late February,
pointing to tight supply of semis, as March order books are closed and April
material is not being offered yet, while overall supply from Ukrainian mills
has shrunk notably over the month amid political and economic crisis. “At least
150,000 t of Ukrainian billet [Yenakiieve Steel is idle, DMKD runs at reduced
capacity] has been withdrawn from the market and this may not be the end,” a
source has told Metal Expert.
Prices for CIS semis have settled at $350-360/t FOB Black Sea (+$10/t to the
upper end over a week). Buyers are ready to accept higher prices in some
markets only . Specifically, market players report a number of
deals signed with Egyptian consumers this week at $385/t CFR (about $360/t FOB
Black Sea). “As soon as the downturn was over buyers started to make deals,
fearing of paying more in future... besides, the correlation of longs and
import billet prices is quite acceptable,” an industry source notes.
Turkish consumers are not making deals at new prices yet. The players wait for
situation in the scrap segment to clear up, as prices are relatively stable
now, but are rumoured to go up.
Source: metalexpert-group.com