Egypt, Turkey, CIS
Egyptian customers continued to actively build up
billet inventories, as the country introduced duties against rebar imported from
Ukraine, Turkey and China
earlier this month.
This move is aimed to support the local long steel rolling
industry, but is expected to spur billet imports
country, sources said.
Some market participants forecast a 30% increase in rebar demand in the
Egyptian market after the end of Ramadan
In Turkey, slow demand for long steel products in the
export market saw Turkish mills resume billet exports.
Two cargoes of Turkey-origin billet, of about 20,000 tonnes
each, were heard sold to Egypt at $405-407 per tonne fob early
last week, sources said.
With the estimated cost of freight at $11-12 per tonne, this
would equate to $416-419 per tonne cfr.
Meanwhile, recent bookings of CIS-origin billet from traders in
Egypt were done at around $415 per tonne cfr, sources
Metal Bulletin’s weekly price assessment for
Egyptian billet imports was $416-419 per tonne cfr on Thursday
June 15, up from $410-416 per tonne cfr previously.
The Turks themselves have been predominantly stayed away from import billet bookings last
and continued to give preference to scrap
The most recent booking of CIS-origin material were heard at
less than $410 per tonne cfr, but that was more than 10
Offers from the CIS region were still heard in the country at
$410-420 per tonne cfr.
The weekly price assessment for billet imports into Turkey
remained unchanged week-on-week at $410-415 per tonne
Away from Turkey, CIS mills were offering their material
at about $400-405 per tonne fob Black Sea.
However, no bookings were confirmed at these
In early June, Ukraine’s Elektrostal was reported
selling several July shipment billet cargoes to a trader,
totalling 30,000 tonnes, at up to $392 per tonne fob Azov Sea.
To normalise it to the fob Black Sea price $5 per tonne
should be added.
Algerian customers were said to have booked a 10,000-tonne
cargo of Russia-origin billet at $415 per tonne cfr.
The estimated cost of freight to the destination is $20 per
tonne, according to one source.
Metal Bulletin’s CIS billet index was $396 per
tonne fob Black Sea on Monday June 12, unchanged week-on-week.
Late last week a 30,000-tonne cargo of Ukraine-origin billet
was rumoured to have been booked by a trader at $392 per
tonne fob Black Sea.
The consignment was to be eventually shipped to Egypt, sources
In the Philippines, Russia-origin 5sp grade billet was heard
offered at $425 per tonne cfr, with rumours about a deal taking place just above
$420 per tonne cfr
more than 10 days ago.
Some sources doubted such a deal could be closed as there were
many offers from China at $420 per tonne cfr at that time, with
buying interest at about $415 per tonne cfr.
At the end of the week, the market discussed a deal taking
place at $420 per tonne cfr Manila for a cargo of Q275-grade
billet from China.
Most sources told Metal Bulletin they did not believe this
could be true, since offer prices from this country have spiked
in recent days.
On Thursday, there was information about offers of Chinese
material to Manila at around $440-445 per tonne cfr, while on
Friday prices were even higher.
"Today I received an offer from China at $455 [per tonne] fob,"
one trading source said on Friday.
Chinese domestic billet price ended the week
at 3,120 yuan ($459) per tonne on Friday
, 130 yuan ($19)
per tonne higher over the week despite falling demand for
finished steel due to the rainy season.
Market participants in Manila expect deals to take place soon
for material from origins such as Russia, Ukraine or even
India, as import duties on billet from all countries
have been reduced to zero in the Philippines since Saturday
Meanwhile, around 40,000 tonnes of Indian billet were heard
booked in other Southeast Asian countries at $400-405 per tonne
fob last week.
Part of the cargo was heard sold in Bangladesh, while the other
part was shipped to Indonesia at around $425 cfr, sources told
Early last week, a 15,000-tonne cargo of Iranian billet for
August shipment was heard booked in Indonesia at around $405
per tonne cfr, according to the market sources.
Later, rumours emerged about one cargo of 40,000 tonnes of
Iranian billet facing payment issues.
The cargo recently arrived in Indonesia, "but the Indonesian
bank refused to pay because the origin in Iran", one local
source said on Thursday.
Several other sources in Indonesia said it was true that
Iranian billet cargoes had recently arrived in the country, but
none of them were aware of any issues with banks so far.
Iranian producers offered billet at $370-380 per tonne fob
southern ports, down $5-10 per tonne over the week on reduced
demand from regional customers as a result of Ramadan.
One cargo was heard sold through traders to the UAE at $395 per
Meanwhile, offers adapted to weaker demand
, coming in
at $400-405 per tonne cfr.
Metal Bulletin’s weekly price assessment for UAE
billet imports was $395-400 per tonne cfr on Tuesday, down from
last week’s $400-405 per tonne cfr.
Juan Weik in Singapore, Jessica Zong in Shanghai, Suresh
Nair in Mumbai, Cem Turken in Mugla and Felipe Peroni in
São Paulo contributed to this report.