Global Billet Market Overview, Week 41

Another reason for intensified trade sentiments is Turkish imported scrap prices which have moved up this week.

Imported scrap prices in Turkey reported a rebound after declining continuously for 3 months. SteelMint learned from market participants that Turkish imported scrap market has observed a recent deal at significantly recovered prices. With prices having dropped to 3-year low levels last month, global suppliers had resisted against accepting any lower bids, however, with steelmakers now looking to actively procure for November shipments, most of the participants anticipate that scrap prices are likely to remain supported in the short term and may climb up further.

Billet export offers from CIS witness a rise - This week billet export assessment from CIS nations stands at USD 350-355/MT, FoB Black Sea, up USD 5/MT against last week. The market sentiments are strengthening the region. Clues can be witnessed with some recent deals to Middle East and Africa from the region; a Ukrainian integrated producer sold around 50,000 MT billets to Saudi Arabia at USD 386/MT, CFR. Another deal of quantity 25,000 MT to Africa is reported to conclude at USD 356/MT from Russia.

Iranian Mill Concludes 5,000 MT Billet Export Deal to Gulf Countries- According to market sources report to SteelMint, an Iranian mill has booked 5,000 MT billets for export to Gulf in recent, sources reported to SteelMint. The deal concluded is for 150*150mm billet and the deal value was reported to be USD 350-355/MT and the delivery is scheduled for Nov'19. This deal has slightly strengthened the market sentiments of the country. Also there were reports of Iranian mills concluding billet export deal to China after the Chinese National holidays at around USD 360/MT FoB levels for immediate October shipments, but no firm information was received till the time of publishing this report.

SteelMint assessment for Iranian billet is at USD 350/MT, FoB Iran. After concluding some deals to China and Far East a couple of weeks back, the country has lowered its billet export offers last week marginally.

SE Asia billet market- The SE Asia billet import market was seen meagerly trade active. The Russian billet offers were assessed at USD 390/MT, CFR Thailand, identical as last week. Market sentiments in the region were reported stable.

Vietnam resumes billet exports offers- The country is reported to resume billet exports this week amid improving export realizations. This week Vietnam’s billet offers are at USD 395/MT, CFR Manila.

China- Chinese domestic billet market was settled at RMB 3,390/MT, down RMB 20 against week opening after holidays.

As per SteelMint’s methodology, an assessment of US-origin HMS 1&2 (80:20) is at USD 233-234/MT, CFR Turkey, up USD 6-7/MT against last week’s report. While assessment of European origin HMS 1&2 (80:20) also stands stable at around USD 228/MT, CFR Turkey.