Global Billet Market Overview: Week 17, 2019

Billet export offers from CIS nations and Iran have softened this week. Offers from CIS have come down by USD 5-10/MT and domestic Chinese prices exhibited volatility this week.

CIS nations: Billet export offers CIS nations witnessed drop of USD 5-10/MT, W-o-W. . According to sources, last week offers from CIS nations is were reported to at USD 430-435/MT, FOB Black Sea while this week offers have come down to USD 420-425/MT, FoB.

The South East Asian countries were the prime disruptor for this price drop, as these countries happen to be the prime market for CIS nations. According to SteelMint's analysis the prime factor encountered for reduction in offers was decline in bids and the election season in the countries like Indonesia, which is among the major buyer of billet. As per reports, SE Asian buyers might turn active for bookings at lowered offers.

Iran: This week billet export offers from Iran are reported to be USD 375-380/MT, FoB. The sources reported about the Tdeal which happened this week. 10,000 MT Billet was booked for export by a major Iranian mill at USD 375/MT, FOB. According to sources, the billet export prices are expected to remain supported on maintained global scrap offers.

India: The Rashtriya Ispat Nigam Limited (RINL), a state-owned steel maker under the Indian Steel Ministry had floated an export tender for 30,000 MT Billets. The last date for bid submission was 26th April 2019. The response to it is still awaited.

China: Domestic billet prices in China have witnessed volatility this week. Towards the beginning o week, domestic billet prices in Tangshan are assessed at RMB 3,560/MT (ex-plant, inclusive of taxes) which was at RMB 3,590/MT towards beginning of the week.