Exports of billets from the CIS countries stabilize due to demand in China

Technically, as production volumes decline, China's buying interest will continue to decline. The drop in iron ore prices, which fell below $ 100 a ton on Tuesday, did not bother traders, who cited buying interest as the main factor behind the rise in prices in China at the moment. But they acknowledge that greater volatility is on the horizon amid difficulties with increasing cash flow, seasonal factors and political fears.

Since the volumes of casting, for October at large mills, are completely closed, there are offers from a Russian scrap processing plant at a price of 590-600 US dollars per ton of billet, which corresponds to netback sales in China. However, in all other regions, including Turkey, demand is weak. Bids at $ 635-640 per tonne in Turkey are being rejected by Turkish roll handling specialists, who are firmly on the verge of waiting for November scrap orders, which are expected to start next week, will clarify Turkish spending.

Scrap prices are generally considered stable at around $ 440 per tonne in Turkey for the premium HMS 1/2 80:20, sources said.

Large Russian billet suppliers are also expected to start targeting sales in the fourth quarter in terms of export duties on ferrous metals, which are not expected to be extended yet.

Following the sale of November shipments, December shipment volumes may be very small or absent due to maintenance and worsening weather, instead delaying deliveries for January and hence duty evasion. By that time, it is expected to intensify the elimination of bottlenecks on China's export routes, which will reduce the time for unloading, traders confirm.