Billet fails to move up, resists downward pressure
The Black Sea billet market remained largely calm over the last couple of days as many market participants were
discussing the next possible price developments on the sidelines of the Irepas conference in Paris early this week.
Prices continued to be under considerable pressure, some buyers and traders said, but as the scrap pricing remains
mainly unchanged, a drop in billet appears to be less likely now, some claimed. A few traders reported Russian
offers at $360-365/metric ton FOB but no sales at this level have been concluded yet.
According to one mill, billet prices for prompt shipment in April/early May will stay stable at around $355-360/mt
FOB Sea of Azov, with possible decreases for material with later shipment dates. “But it all depends on scrap,” the
mill added. Some noted that the recent hike seen in Chinese asking prices for exports was a sign that CIS mills
would be reluctant to slash their offers, despite resistance among buyers.
“I think the market won’t change much by the end of March. People are waiting to see what happens with scrap and
will start looking for billet sometime in April,” a trader in the Middle East said.
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Another trader, based in Israel, said he thought the market was moving down. He had billet offers from the CIS at
$400/mt CIF Israel, but deals “are bound to be under $400/mt, possibly $390/mt,” he added.
Platts’ daily billet price assessment was $355/mt FOB Black Sea on Tuesday, unchanged on day.