Press releases

CIS billet targets $600/t on firm scrap and restocking - 19 December 2011

CIS billet export prices
21 November - 19 December 2011

©SBB 2011

 

21 Nov 11

28 Nov 11

5 Dec 11

12 Dec 11

19 Dec 11*

FOB $/t

 560 - 580 

 555 - 572 

 560 - 580 

 580 - 595 

 580 - 595 

* SBB forecast, except announced surcharges

Traders were buying CIS-origin billet at the end of last week at prices up to $595/tonne fob Black Sea, an indication that they will be selling for at least $600/t fob Black Sea, market sources tell Steel Business Briefing. "The stocks are still low, so those who haven't bought at the bottom are hungry now, and will try to buy before prices go up any more," a source says.

With availability dwindling quickly, North African and Eastern Mediterranean buyers are likely to continue buying next week, SBB’s sources say. They add that there seems to be a lot of trader speculation, as none of the producers are expected to quote anything until 10 January, when they come back from the extended New Year and Christmas celebrations.

Iran is said to be attempting to buy too, with "serious enquiries coming out for large tonnages", according to one source, but financial restrictions continue to curb its ability to import.

In the Far East of Russia, Amurmetal is said to have closed its January casting books, with very considerable orders at levels of up to $610/t fob Nakhodka. The mill is comfortably stocked up with scrap to fulfil all the orders, which may exceed 50,000t, sources say. Evraz is not offering at the moment, SBB hears.

Recent Turkish scrap import prices’ rally and the need to restock have been instrumental in billet prices rising, but sources wonder whether this increase has the capacity to turn to a trend. Most believe prices will continue at current levels or may rise further, as shortages will remain for the next month.

 

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