Chinese Billet Prices have almost dropped down to 5 months low to RMB 2720/MT (USD 390/MT) Ex-Tangshan including 17% VAT, this month. Export of billet from China are heard to be offered at USD 390/MT. The prices have almost moved down by USD 65/MT as it was USD 450/MT in Mar’17.
China has not been active in sea-borne market as the domestic market has been strong in china and the prices have almost been peak high in their domestic market which has made them away from the global market. As the prices for Chinese Billet has shown correction, Chinese suppliers would return to the market. It would increase the supply of Billet would increase.
According to Steelmint Analysis, There has been a correlation in the Prices of Chinese Billet and Prices of scrap in Turkey. When the prices of Chinese Billet has moved down the prices of scrap in turkey has also seen a downward correction. As the graph above shows that the prices of Chinese billet saw a down fall in the month of July’15 at USD 302/MT from USD 333/MT In June’15, the prices of Scrap in Turkey also went down in the same ratio in July’15 at USD 251/Mt from USD 285/Mt in June’15. Same can be evaluated from April’17 as when the prices Chinese billet went down to USD 430/MT from USD 445/MT in March’17 and Scrap prices were also seen moving downward in the same ratio again to USD 273/MT from USD 291/MT in March’17. This shows that there is a correlation between Chinese Billet and Scrap Prices (CFR Turkey).
The most prominent raw material Chinese Billet may put back the prices for scrap under pressure as the Chinese billet is expected to return to the global market strongly after a huge dip this month
Scrap Prices in Turkey fall
The largest importer of scrap Turkey has also seen downward correction and standing at USD 269/MT. A downfall of USD 6/Mt from last week which was USD 275/MT CFR Turkey. The buyers in Turkey have time to wait and test the market given they have all the required stock till May’17. According to sources as the trends suggest it is hard to say where the market for scrap in turkey is heading towards as Market buyers are still testing the global finished steel market by reducing its offer prices.
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