Billet export offers from CIS nations have moved sharply by USD 10/MT on weekly premises. Billet export price assessment now stands at USD 500/MT, FoB Black Sea compared to last week’s assessment of USD 490/MT, FoB Black Sea.
As per market sources report, mills in Turkey prefer billets over scrap due to tight supply and high prices of graphite electrode.
On the other hand, imported scrap prices in Turkey had moved down to USD 342-345/MT, CFR Turkey for US origin HMS (80:20) declining by USD 30/MT since beginning of Jan’18.
However in last couple of days, imported scrap prices in Turkey have edged by USD 5/MT amid rise in rebar export offers and improving rebar trades.
Turkish mills troubled over limited availability of graphite electrodes
Few Turkish mills have been caught out with reduced graphite electrode supplies in the spot market, having earlier declined signing long-term contracts with GrafTech. The supply situation has turned grave, where the mills have no buffer stocks.
These mills are now looking at procuring the required electrodes from China on an urgent basis. Chinese graphite electrode prices in the spot market are at around USD 25,000/MT. However, a majority of Turkish steel mills are preferring to roll billet over melting scrap, worried about the supply concerns of Graphite electrodes.
There is also a question mark on the availability of graphite electrodes from China, on the rise in Chinese steel production through the electric arc furnace route. Pollution concerns establish the EAF route to steel-making – preferable, as it is more environment friendly.
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