Last week trade in the export market of the billet from the CIS have been sluggish, according to Steel First. "The offer price is growing along with the cost of scrap and the demand there," explained one trader.
Offers range from 370 to 380 USD per tonne FOB Black sea for billets shipped in may. However, the deals last week were not enough, say market participants.
As of Monday, 20 April, despite the presence of factories of the CIS has not sold blanks in the production plans for may, manufacturers are in no hurry to reduce prices to stimulate sales, and prefer to wait and try to "save costs".
Price indicators from buyers of the workpiece at the same time was at the level of $ 360-365. Dollars per ton FOB Black sea. Steel First estimates of export prices for billet from the CIS this week on the level of 365-370 dollars. Dollars per ton FOB Black sea, at $ 2.50 per ton higher than a week earlier.
Egyptian customers have requested a billet from the CIS 382 USD. Dollars per ton on CIF Alexandria, but firm proposals have not been done, according to one of the traders.
Turkish customers were willing to pay $ 380. Dollars per ton of billets from the CIS on the terms of CFR Marmara, said another source.
Some market sources have estimated real price level of $ 350. Dollars per ton FOB Novorossiysk and Odessa (Black sea) and $ 345 per ton on FOB Mariupol (Azov sea). Meanwhile, the freight from Odessa on 2-3 dollar per ton lower than from Novorossiysk, due to the large turnover in the past.
However, the offer prices of billet so far above the expectations of customers.
Russian "Novorosmetall" still offers their billet at 370-375 USD. Dollars per ton on the Black sea, but over the last two weeks there was no sale at this price, the source said.
Ukrainian "ArcelorMittal Krivoy Rog" was offered a billet for 375 dollars. Dollars per ton FOB Black sea, a Russian "Mechel" asked for 380 dollars per ton of billet on FOB Black sea. However, these proposals were "too high" and buyers at that price is not found, the traders said.