CIS billet exports up $25 per tonne for June production

CIS billet export bookings are up $25 per tn and offers have increased further for June production.

Some CIS mills are still limiting their billet export allocation due to strong domestic demand, which has forced buyers to explore other markets such as Turkey even though prices continue to rise on a daily basis.

Ukraine’s Donetsk made a billet export booking at $1,025 per tn FOB Black Sea port for June production late last week, according to traders., up from business done elsewhere at $1,000 FOB earlier in the week.

Offers have gone up to $1,040-1,050 per tn FOB Black Sea port for June production, according to a representative from a CIS billet producer.

But one CIS billet trader told MB that the market will not accept higher prices. “In Southeast Asia billet can be sourced at around $950 per tn delivered. I don’t think over $1,000 per tn FOB is an achievable price in today’s market,” said one trader of CIS billet.

Prices surged on the LME Mediterranean billet contract with the bid/offer spread for 3-month delivery hitting $1,065/75 in Monday's official ring. The backwardation to the 15-month prompt remained in place with a bid/ask spread of $1,055/65.

The 3-month LME Far East billet price hit $1045/1055 per tn in the official ring on Monday and $1040/50 per tn for the 15 month delivery date. The pre-market trading on the LME’s electronic trading platform Select and the telephone market saw 10 lots traded.