CIS factories calculate billets of $ 500

Procurement prices are high, but they are not rising as fast as other commodities. Traders expect this round of sales to hit roughly $ 500 per tonne for January /February loading material as supplies are limited to CIS countries and Turkey only.

Turkey itself is in the procurement market and the demand in traditional importing regions continues to awaken.

Sources say the January download is nearly sold out and the February download is not yet fully offered. Turkish import prices for a billet with a cross section of 125mm are USD 490 per tonne cfr, with some deals in line with domestic prices.

Two batches - one small and one large - were sold in Turkey at $ 482 /t and $ 480 /t from the plant on Monday, with bids at $ 490 /t from the plant /fob, in line with import prices. Bids range from USD 465 per tonne to USD 500 per tonne of billets from CIS countries, depending on supplier, tonnage and destination.

Turkey's appetite is fueled by a relative shortage of billets, as buyers of non-traditional billets who have their own billet supplies switch instead to slab production on their universal filling machines. This is due to the boom in the flat-rolled product market in Turkey and slab import prices, which theoretically now amount to USD 550-560 per tonne, as CIS suppliers are not yet actively offering slabs.

Traders note that the lack of European and Brazilian billets, which are traditionally present on the market at this time of year, exacerbates shortages and price pressures, while strong scrap metal further contributes to this.

Meanwhile, demand is also expected from Egypt, where domestic rebar prices rose by about $ 35 per tonne over the weekend, a couple of traders said. According to them, given the lack of additional supplies at the moment, this will undoubtedly contribute to a further increase in prices for the Black Sea billet.

As you might expect, China is quiet now, traders say. "Traditional buying markets are only now waking up, but China has led this round of price increases, so its calm position makes sense," says a major trader.