Steel billet prices in the seaborne market continued to rise in line with strong demand and rising scrap and steel prices.
Global billet suppliers have raised their offers this week amid improved demand and rising scrap prices. While China is still not offering billet for export due to improved domestic billet prices and consistently rising scrap prices globally have forced re-rollers to look for alternative source.
Notably scrap prices in global market have increased by around USD 20/MT in last one month due to rising demand from high grade scrap and falling steel exports from China. HMS 80:20 prices to Turkey have increased to USD 323/MT CFR and shredded to USD 328/MT, CFR.
CIS suppliers have raised their offers to USD 470-475/MT FOB Black Sea this week, while Iranian suppliers are also eyeing higher prices.
Indian billet exporters have hold their sales and expecting prices may go up further. Also,Indian domestic billet prices have gone above the export realizations, which have made exporters to sit back.
Key Trade Activities
1. South Korean trader heard to have sold 20,000 MT billets of size 125mm (5SP) to Philippines at around USD 485/MT MT CFR Manila last week,
2. Iran’s KSC have floated a fresh export tender of 30,000 MT billets of size 130*130mm/150*150 mm, for Feb’18 shipment, expiring on 01 Dec’17. Last traded price from Iran were recorded at around USD 455-460/MT FOB
3. India’s Vizag Steel has floated an export tender of 15,000 MT billets of size 90*90mm for end Dec’17 delivery, expiring on 29 Nov’17. Last tender for 150*150 mm was concluded last week by Vizag Steel was settled at USD 451-452/MT FOB. Indian exporters would not expecting prices lesser than USD 460-465/MT FOB.
4. Egypt traders expect buying activities to improve from next week. They have received offers from CIS region at USD 490/MT CFR and from Iran at USD 485/MT CFR Egypt.
5. Chinese domestic billet prices are assessed at RMB 3,840/MT (USD 582) ,ex-Tangshan, prices including 17% VAT
6. Indian domestic billet (induction grade) billet prices are hovering at INR 29,400/MT, ex-Mumbai, prices excluding 18% GST. Since presently domestic billet prices in India are comparatively higher than export realizations, therefore Indian exporters have resisted from offering in global market. Also many exporters are booked till Jan’18, so they are not seen offering material for exports so aggressively.
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