CIS billet exporters have received another boost as Turkish and Algerian re-rollers returned to the market with higher bids and made bookings.

Although mainstream offers remained at $385-390/tonne fob Black/Azov Sea for September-loading material, there were several bookings of ex-Rostov material to Turkey at $382-388/t cfr, depending on port. This nets back to around $370-375/t fob Black Sea.

Chinese demand remains, but rising freight rates are erasing arbitrage, forcing sellers to wait for higher prices in China, which are expected by the majority of sources. The “golden” autumn construction season is promising to be strong, with inventories easing due to better weather, despite ongoing fluctuations. Several traders claim $420/t cfr China is achievable this week, bringing new CIS sales to China closer, Kallanish notes.

Algeria, meanwhile, is also active with enquiries, amid rising domestic rebar prices that are signalling a further recovery from the throes of the Covid-19 pandemic and oil price crash. Although bids are not exceeding $400/t cfr Algeria, and as such would not work at current offer levels, traders are active in sourcing material for Algeria, while trying to contain price increase.

Gulf Cooperation Council buyers are also active, but there were no sales in the last seven days, since the Ukrainian lot was sold to Saudi Arabia at around $378/t fob net back price. Deals are expected this week, as buyers are aware of China's buying potential, and the little alternative to CIS material there is. Turkish billet is tentatively offered at $395-405/t fob, on higher scrap prices and shrinking availability.