Global Billet Market Overview: Week 48, 2019

This week global billet market was reported functioning. Billet market sentiments and offers from/in all the major markets have moved up. The major supporting factors for improved sentiments and increased trade functionality are China restrictions on scrap import supported by ongoing production curbs and increasing Turkey's imported scrap prices.

Turkey's imported scrap prices have moved up in recent deep-sea cargo bookings concluded in last few days. The prices stood stable for last couple of weeks over slow buying activities; however, the upcoming winter holidays in Europe and North America are expected to drive restocking at higher price in coming weeks for January shipments.

Iran- This was the second consecutive week, when Iran billet export market reported trade active. The country booked around 40,000-50,000 MT billets to China at USD 410/MT CFR levels and the shipment is scheduled for Jan'20. This deal has marginally raised the country's billet offers by USD 5/MT. SteelMint assessment for Iranian billet are standing at USD 375/MT, FoB Iran. As was foreseeable by marketers, the scrap import restrictions in China are driving the billet exports from Iran which is being supported by Turkey's imported scrap prices.

CIS - This week, billet export offers from CIS nations were reported stable and are standing at USD 385-390/MT, FoB Black Sea, identical as last week.

SE Asia - This week, SE Asia's billet import market was reported trade functional for the successive week. The region is reported to book around 30,000 MT billets from an Indian private mill. According to SteelMint sources, the shipment is booked to Indonesia and the deal value is reported to be around USD 405/MT, FoB. With this deal, the billet import offers in region have marginally gone up, supported by Turkey's scrap import prices.

SteelMint assessment for billet import offers in SE Asia is at USD 420-425/MT, CFR, up USD 5/MT against last week.

India: In recent deals concluded to SE Asia, prices for Indian blast furnace grade billet were assessed at USD 405/MT, FoB India and for induction grade billet, offers are around USD 395/MT, landed Raxaul border.

Vietnam - This week, the country has resumed its billet export offerings, after October end. The billet export offers from the country are at USD 425, FoB, Vietnam.

China- Chinese domestic billet market was settled at RMB 3,450/MT, up RMB 10/MT against last week. The market sentiments in the country were reported stable in the country.