Global Billet Export Offers Fall Amid Drop in Scrap Prices

The global billet market sentiments are getting weaken with every passing day. Sharp drop in the offers of two billet export majors'; CIS nation and Iran, was witnessed this week. The current billet export offers from the two are USD 355-360/MT, FoB. Although, no deals were reported at this offer. However, last deal was reported to MENA region from CIS nations at around USD 365/MT, FoB, Black Sea.

SteelMint analyzed the reasons for falling billet prices and learnt, Turkish imported scrap prices have moved down further this week. With the continued low demand of Turkish finished steel and the resultant production cuts by mills, many steelmakers have been pressurizing global suppliers of imported scrap to accept their lower bids. Another reason for dull billet market sentiment is slowdown in the global economy. Owing to this, the bids have consistently witnessed decline.

As per SteelMint's assessment, US-origin HMS 1&2 (80:20) scrap has moved down to USD 244/MT, CFR Turkey. Prices have moved down further by around USD 10-11/MT against last week's report, while in comparison to the last booking reported, the fall in prices is around USD 8/MT.