The Black Sea billet export trade has subdivided into several differently priced markets, which operate almost independent of current scrap price trends.

The disparity is due to the many interlaced fundamentals playing out in the fatigued market, where the vast majority of buyers are preparing for holiday breaks while attempting to secure necessary volumes. Availability is generally tight and dynamics too uncertain for small traders to get involved, but a couple of large traders are managing to take advantage of the situation due to better credit ability, traders say.

Russian billet from scrap-based producers is still offered at $640-650/tonne fob Black Sea with very short lead times, as they attempt to ship as much material as possible before an export duty of $115/t comes into force on 1 August. Some Turkish buyers have taken advantage of these offers in the past week, booking at $675-680/t cfr. One of the buyers is buying billet and directing all crude steel it produces to flat products manufacturing, sources say, adding that large integrated Russian suppliers were not seen in the market, as they are sold out until September.

Large Ukrainian drawing quality billet lot was sold to North Africa at $685/t cfr, netting back to $645-650/t fob, earlier last week, as demand in the region remains moderately good. Another Ukrainian supplier is offering billet at $700-710/t fob, mainly to Europe, but sources doubt whether the seller will be successful at achieving this price level.