Global Billet Market Overview: Week 40, 2019
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This week, global billet market was reported dull after witnessing trade active last week. The prime reasons for the sluggish week were the holidays in China and fallen Turkey's imported scrap prices, SteelMint learnt from market sources.
The Turkish imported scrap prices have marginally moved down in recent deals, while market believes the prices to have more-or-less stabilized at these levels for the short term due to improvement observed in Turkish Billet and Finished steel demand.
Billet export offers from CIS fall; further decline seems limited - This week billet export assessment from CIS nations stands at USD 345-350/MT, FoB Black Sea, down USD 10/MT against last week. The market sentiments were reported weak in the region.
However as per reports few major mills have planned to suspend operations at some of their capacities and hence are not willing to lower offers further.
Iran billet export offers drop by USD 10- After concluding some deals to China and Far East last week, the country has lowered its billet export offers. According to SteelMint assessment, the billet export offers from the country dropped down to USD 340/MT, FoB levels, down USD 10/MT, against last week.
According to sources reported to SteelMint, this abrupt price drop in the billet export offers from the country is primarily due to CIS export offers; for some past three weeks, the prices of CIS and Iran were at the same level which increased the pressure on Iranian sellers to reduce the prices.
SE Asia billet market- This was the consecutive week when SE Asia billet import market was reported sluggish with offers dropping sharply. The billet import offers in the region were assessed at USD 385-390/MT, CFR down, USD 15-20/MT against last week. The falling Turkey's import scrap prices have managed to keep the market sentiments weak in the region.
A Thailand based market participant highlighted that no recent offers were heard recently. However last indications heard for Indian origin induction grade billet was at USD 380-385/MT, CFR.
Vietnam billet offers - This week Vietnam's domestic billet offers are at USD 410/MT, down USD 10/MT against last week. Marketers still prefer domestic market amid lower prices realizations in exports.
A global trader confirmed China has booked around 45,000 MT coil making slab at USD 390/MT, CFR China, last week from Russia.
As per SteelMint's methodology, an assessment of US-origin HMS 1&2 (80:20) scrap has inched down to USD 226/MT, CFR Turkey, slightly down by USD 2/MT against last week's report. While assessment of European origin HMS 1&2 (80:20) also stands stable at around USD 220/MT, CFR Turkey. Turkish imported scrap prices continue to stand at 3 - year low levels, as per data maintained by SteelMint.
