Global Billet Market Overview Week 37, 2019
...
This week global billet export market was reported trade active. Almost all major markets spectated the trades this week. However, all trades were reported with price fall. The prime reason for weak trade sentiments is the ongoing price war between CIS nations, India and Iran which is weakening the global billet trade sentiments.
Another reason for weakened trade sentiments is, 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 and hence the billet producers to accept their lower bids. Another reason for dull billet market sentiment is slowdown in the global economy.
Billet export offers from CIS witness a sharp drop - This week billet export assessment from CIS nations stands at USD 355-360/MT, FoB Black Sea, down USD 10-15 against last week. The market sentiments were reported weak in the region. If sources to be believed, a deal from Russia to Indonesia is reported to conclude at USD 405/MT, CFR. The deal quantity was reported to be 50,000 MT.
SE Asia billet market: SE Asia billet import market witness a deal from Russia (unconfirmed) this week, sources reported to SteelMint. However, the billet import offers in the region have dropped down to USD 405-410/MT CFR SE Asia down USD 5/MT against last week.
Iranian billet export prices fall in recent deal- This week Iranian billet export market sentiments were reported weak. Current billet export offers from the country are standing at USD 355-360/MT, FoB Iran. However, one of the leading billet producers of the country had floated a billet export tender last week. If sources are to be believed, the company has concluded the tender at USD 360/MT, FoB Iran. The tender quantity was reported to be 40,000 MT (150*150mm * 130*130mm) and the material is likely to be shipped to Far East and shipment is scheduled in Nov'19.
India's Vizag Steel concludes 30,000 MT Bloom export tender- Rashtriya Ispat Nigam Limited (RINL) -a state-owned steel maker under the Ministry of Steel had invited an ocean export tender for 15,000 MT wire rod and 30,000 MT bloom.
According to sources report to SteelMint, the company has concluded the bloom (IS 2830 grade) export tender. The material offered has specifications - C-0.12-0.23%, Mn - 0.3-1.5%, Si- 0.4% max, P-0.045% max & S-0.045% max. The deal value was reported to be USD 380/MT, FoB and shipment is scheduled on 15 Oct'19. The company has cancelled other lots of wire rod.
Vietnam billet market- Formosa Ha Tinh Corporation (FHS), Vietnam's largest steel manufacturer of the country has slashed its billet offers for shipments scheduled by Oct'19. The price offered for billet by the company is reported to be USD 420/MT, CIF North, down USD 35/MT against last month and that to for South is reported to be USD 425/MT, CIF, down from USD 460, CIF against last month.
As per SteelMint's assessment, US-origin HMS 1&2 (80:20) scrap has moved down to USD 240/MT, CFR Turkey. Prices have moved down further by around USD 15-20/MT against last week's report.
