Global Billet Market Overview: Week 27, 2019

As was foreseeable, the boosted Turkey's scrap import prices brought some support to the global billet market. The clues can be witnessed with the rise in billet export offers of prime exporters. However, the market awaits billet deals to be concluded at high prices.

Turkey imported scrap prices have rebounded by USD 10-12/MT against last week. SteelMint's assessment of imported HMS 1&2 (80:20) stands at USD 299/MT, CFR Turkey.

Billet export offers from CIS nations up by USD 5- This week offers from CIS nations were assessed at USD 420-430/MT, FoB Black Sea. The sentiments were reported marginally strong in the region.

Iran Billet Export offers Up; trades subdued: The Iranian billet export offers inched up this week. However, the market awaits billet deals to be concluded at increased offers. According to SteelMint, this week Iranian billet export assessment stands at USD 385-390/MT FoB for 3 sp grade. The shipment is scheduled for end Aug-early Sep'19.

The US sanctions are the prime reasons which are keeping the potential buyers of the country in hesitation. Although, despite the U.S. sanctions on the country's metals and minerals sectors Iran's crude steel output hit 2.235 MnT in May, World Steel Association reported. As per reports, the country has also established a special working group in the ministry which is closely assessing the situation and making necessary arrangements to mitigate the impact of U.S. sanctions.

South East Asia billet market: South East Asia billet import offers are assessed around at USD 460-465/MT, CFR levels, the trade sentiments are reported marginally strong this week in the region. SteelMint learned from sources that billet export offers from Russia stands at USD 460/MT, CFR Manila.

The US sanctions ramifications can be witnessed in the region, which are heftier over rising Turkey's scrap import prices

Vizag Steel floats ocean export tender: Rashtriya Ispat Nigam Limited (RINL)- the state owned steel maker under the Ministry of Steel, had floated an ocean billet export tender for sizes; 65*65, 77*77, 90*90 and 150*150. The total export quantity of tender was reported to be 30,000 MT. The company has witnessed limited participation for sizes; 65*65, 77*77 and 90*90, due to which it has to cancel the tender for these sizes. However, the tender for size 150*150 is still under negotiation. SteelMint's assessment for 150*150mm billet stands at USD 420-425/MT, FoB.

Vietnam billet offers - No firm billet export offers from Vietnam were reported this week.

China domestic billet prices stand still: This week Chinese domestic billet prices settled at RMB 3,620/MT. Chinese domestic billet prices in Tangshan moved up towards the beginning of this week to RMB 3,670/MT including VAT however towards end of the week, prices declined on weaker market sentiments.