Black sea billet export offers have reached one year high on strong demand and rising scrap prices in global market. This week few deals have been reported at a level of USD 410-415/MT FOB black sea, which are largely made to Egypt and Turkey at USD 430-435/MT CFR levels.
CIS based producers are now eyeing a price level of USD 415-420/MT FOB Black Sea.
Participants report strong demand from Egypt and Turkey, along with rising scrap prices in seaborne market as major factors for rising billet prices.
CIS region is one of the largest billet exporting regions in the world. According to customs data maintained with SteelMint, Ukraine exported nearly 7.75 MnT billets in CY16.
Absence of Chinese Billet:
Absence of Chinese billet in seaborne market is another factor which is supporting global billet prices. Chinese domestic billet prices have increased on account of government’s directive to close some induction furnace near Beijing region, which has created shortage in domestic market.
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