Global Billet Market Overview: Week 35, 2019

This week global billet market observed few deals in SE Asia. Rest all prime markets remained silent. SteelMint tried to scrutinize the trade silence in prime markets other than SE Asia and learned dipping global scrap prices and slow down in the global economy are the prime reason for this fall.

Another reason for trade silence in major prime markets other than SE Asia is; leading billet producers like India are increasing focus towards the region as the country feel it can conveniently compete with Iranian billet prices in SE Asia. Also India is having inventory of billets amid dull domestic demand.

Billet export offers from CIS witness a sharp drop- This week billet export assessment from CIS nations stands at USD 385-390/MT, FoB Black Sea, down USD 15 against last week. The market sentiments were reported weak in the region.

SE Asia billet market: The SE Asian billet import market witness some shine this week as couple of deals from India is reported to been concluded in the region. SteelMint’s billet export assessment for 150*150mm stands at USD 395-400/MT, FoB India.

This week one of the steel major from India; a government of India enterprise is reported to sell billet to SE Asia of size 125*125 mm at USD 403/MT FoB levels.

Iran billet export offers soften further amid no trades- This was the second consecutive week of the month in which the country witnessed no trades. The billet export offers from the country also got further soften to USD 375-380/MT, FoB, from USD 380-385/MT, FoB last week to see a drop of USD 5/MT, this week.

Vietnam billet offers - This week Vietnam’s domestic billet offers are at USD 450/MT, identical as last week. Amid lower prices in exports, mills were heard preferring billets in domestic market. The marketers believe, they cannot compete with Indian origin billets and hence focusing on the domestic market.

China domestic billet prices fell by RMB 110/MT- This week Chinese domestic billet prices in Tangshan settled at RMB 3,300/MT, down RMB 110 against last week’s close of RMB 3,410/MT including VAT. This week, billet trade sentiments in China were reported weak.

Turkey imported scrap prices fall further - The global ferrous scrap market has witnessed downtrend in almost all major markets this week. Turkey imported SCRAP prices at 2-years low. HMS (80:20) European origin at USD 270/MT, CFR Turkey