CIS billet prices rise thanks to new sales

Billet prices in the Black Sea export market rose this week on the back of new sales at higher levels, leading to even higher supply.

This comes as Turkish scrap is breaking the psychological barrier of $ 300 per ton this week. It followed a weekend rally in China's iron ore, which boosted steel prices. This supports December sales of casting billets, which are scarce.

After a Russian offshore producer sold a 20,000 tonne billet to a trader this week at $ 425 per tonne on the Black Sea market, it was reported that a Ukrainian supplier had sold a large tonnage in Peru at just over $ 430 per tonne. on the black sea market. This follows the sale by a Russian producer to a Turkish southern processing company late last week of a batch of 10,000 tonnes at a price of US $ 440 per tonne in Turkey. The material is in draft quality and is intended to be loaded in December, with freight estimated by the trader at $ 15 per tonne, less $ 425 per tonne FOB.

Market sources are currently posting bids from LPG plants at $ 430-435 per tonne for January casting and expect sales to China compared to January reports. Since the price of billet from Tangshan has risen by 70 yuan a tonne to 3,580 yuan a tonne ($ 540 a tonne) since last weekend following the announcement of new production restrictions, import prices are expected to rise as well. China is trading at $ 460-462 per ton, which is unrealistic for Black Sea suppliers at current levels, but traders expect sales to end at the end of this week or next at higher levels.

Some sources continue to call for caution as the ongoing second wave of the Covid-19 pandemic and the possibility of further restrictions may still impede an upward trend. However, most of them are optimistic about January sales at a level close to the supply level.