CIS billet suppliers keep targeting further price uptick on exports. A positive outlook in the segment of longs in MENA together with stronger scrap quotes support upward moods of CIS producers. This week, however, business activity was calm.
In the last days of June export prices for CIS billets are ranging within $400-405/t FOB Black Sea, unchanged week-on-week. Deals were almost absent this week in MENA due to the end of Ramadan celebration. One-off contract for Russian billets has reportedly been closed at $405/t FOB Black Sea lately, sources say. “The main activity should come next week when buyers will fully return to the market,” an insider said. Producers, meanwhile, have already voiced higher offers for August output, within $405-410/t FOB Black Sea.
Positive sentiments of the suppliers are warmed up by expected growth of demand in early July. “We don’t think customers in Egypt have built up enough stocks [of billets], so they will continue buying,” a trader told. Current offers for CIS semis in Egypt are at $425/t CFR. Some transactions are expected in Turkey as well given hiked prices for longs and growing scrap tags in the country. Market insiders expect re-rollers to come to deals at $400-405/t FOB ($415-420/t CFR).
01 July 2017