Falling Global Prices Limit Participation in Indian Billet Export Tender

Sharp decline in global scrap prices and dull global demand has weighed down sentiments in global billet market as well. All major markets like Russia and Iran have witnessed decline in offers this week.

One of the leading Indian steel makers had floated an export tender for billet (90*90mm) and blooms (200*200mm), last week of size 10,000 MT each for end Feb'20 shipment. As per sources, the tender received dull response. The tender witnessed limited participation amid falling Turkey's imported scrap prices supported by ongoing New Year holidays in Far East & South East Asian countries.

Billet export offers from all the major billet trading nations have witnessed a drop. Buyers are anticipating further drop in billet prices and are currently in a wait and watch mode as Turkey's imported scrap prices have fallen further in a recent deal.

SteelMint learned from market participants that, imported scrap prices to Turkey have dropped by a significantly in a fresh deep sea cargo booking concluded from USA, while the sharp downturn is now expected to reflect in global offers to major import markets worldwide.

Another factor which is leavening the falling of global billet prices is escalated political tensions between U.S and Iran.

SteelMint assessment for billet export offers from CIS are at USD 385-390/MT, FoB Black Sea, down USD 5-10/MT against last week. While that for Iran is at USD 380-385/MT, FoB Iran, down USD 5-10/MT against last week.