The market is now battling with three elements; dipping Turkey’s scrap import prices, US sanctions on Iran and wet weather conditions in South Asia and South East Asia. All these elements are pushing back marketers from making any purchase.
Offers from CIS nations dropped down: CIS nations billet export offers remained unchanged this week and are reported at USD 410/MT, FoB Black Sea. The sentiments were reported weak in the region.
Falling global offer keeps Iran billet export offers under pressure: Iranian billet export market sentiments reported dull this week. This week country’s billet export offers were reported between USD 375-380/MT FoB. The US sanctions are gradually getting hefty on the Iran billet export market.
South East Asia billet offers fell marginally: The region’s billet import offers are assessed around USD 450-460/MT, CFR levels, marginally down against last week. Offers from CIS nations to Thailand were assessed around USD 450/MT, CFR Thailand and that to Philippines are learned around USD 455-460/MT, CFR Manilla.
The billet market sentiments have weakened in the SE Asian countries. The two prime factors which are directing the market sentiments in SE Asia are US sanctions and wet climatic conditions, which are pushing back marketers from making any purchase.
India's RINL concluded billet ocean export and Nepal tender - Rashtriya Ispat Nigam Limited - a government of India Enterprise, has concluded the billet export tender for 20,000 MT (150*150mm) quantity recently. As per sources, the tender has been concluded at around USD 435/MT, FoB India. The material shipment is to be made by mid Jul’19.
Initially the company had invited the bids for 50,000 MT quantity, but ended by concluding for 20,000 MT only of size 150*150 mm. Limited participation was witnessed, due to which company had to cancel other lots of this tender.
For billet only a single lot of 2,709 MT (1 rake) has been concluded to the highest bidder at around USD 435/MT ex-mill, as per sources.
Vietnam billet offers - This week Vietnam billet (130*130mm, 5 SP grade) offers were reported to be USD 455/MT, CFR Manila, lower by USD 5 W-o-W. The billet export trade sentiments are reported marginally down this week in Vietnam.
China domestic billet prices fall: This week Chinese domestic billet prices settled at RMB 3,460/MT, down RMB 40 against last week's close. This week, billet trade sentiments in China reported weak, however towards weekend prices inched up.