London (Platts)--12Nov2012/1158 am EST/1658 GMT
CIS billet export traders are opting to take cargoes via the Black Sea for late-December, January shipments rather than risk braving icy conditions in the Sea of Azov, market sources said Monday. Belarus producer BMZ's 30,000 mt tender late last week was booked on 100% pre-payment at $522-525/mt FOB Odessa by two large traders for the mill's December output. This equates to a mid-January load ready cargo at $532-535/mt FOB, were it booked using letter of credit. A day prior to this sale, $515/mt FOB Mariupol for late-December shipment was achieved by a Middle East-based re-roller. "Buyers are wary of booking out of [the Sea of] Azov because of the weather problems last winter that meant shipping was near-impossible as it froze," one CIS-based trader said. Article continues below...Platts 2nd Annual SBB Steel Supply Chain Conference 2012November 27-28, 2012, Hilton Antwerp, Antwerp, BelgiumPlatts Annual SBB Steel Supply Chain Conference will assemble Europe's leading steel supply chain professionals to assess the rationalization taking place and discuss how approaches, strategies and models are being reassessed in the current climate. The conference will also challenge existing market structures and showcase best practice examples which will enable the successful navigation through today's volatile demand and high transport cost environment. Reassessing the role and value of the steel supply chain in EuropeManaging volatile demandManaging transport cost and distribution risk mitigation strategies in the current climateImproving the quality, efficiency and productivity of the steel value chainEnhancing the service offer and reducing downstream supply chain cost
CIS billet export traders are opting to take cargoes via the Black Sea for late-December, January shipments rather than risk braving icy conditions in the Sea of Azov, market sources said Monday. Belarus producer BMZ's 30,000 mt tender late last week was booked on 100% pre-payment at $522-525/mt FOB Odessa by two large traders for the mill's December output. This equates to a mid-January load ready cargo at $532-535/mt FOB, were it booked using letter of credit. A day prior to this sale, $515/mt FOB Mariupol for late-December shipment was achieved by a Middle East-based re-roller. "Buyers are wary of booking out of [the Sea of] Azov because of the weather problems last winter that meant shipping was near-impossible as it froze," one CIS-based trader said.
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Platts Annual SBB Steel Supply Chain Conference will assemble Europe's leading steel supply chain professionals to assess the rationalization taking place and discuss how approaches, strategies and models are being reassessed in the current climate. The conference will also challenge existing market structures and showcase best practice examples which will enable the successful navigation through today's volatile demand and high transport cost environment.
This explains the near-$20/mt like-for-like differential between the Azov booking and those Odessa bookings. Other major mills are now not looking below $525/mt FOB for December output. Re-rollers in the UAE received an offer at $575/mt CFR, with freight at around $50/mt for smaller shipments. Meanwhile, with Iskenderun-based re-rollers selling well to Iraq and looking for alternatives to local mills' offers of $565-570/mt EXW for billet, last Wednesday's sale price of $555/mt CFR could be achievable again. As a consequence, Platts daily Black Sea billet assessment recovered to $525/mt FOB Black Sea ports Monday, having fallen on the back of some softer trades towards the end of last week.--Ciaran Roe, ciaran_roe@platts.com--Katya Ourakova, katya_ourakova@platts.com--Edited by Martin O'Rourke, martin_orourke@platts.com
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