Global Billet Market Overview- Week 03, 2020

This week, global billet market was reported trade active. All major billet exporting nations; CIS India and Iran were reported with deals. However, amid fallen Turkey’s imported scrap prices, billet export offers from/in all the billet trading regions had fell down. The drop in billet offers is being supported by escalated tensions between U.S and Iran.

CIS-Billet export offers from the region witness marginal drop of USD 2-5/MT W-o-W amid disparity between bids and offers and now fallen Turkey’s imported scrap prices will support the event. This week, billet export assessment from CIS nations are at USD 405-410/MT, FoB Black Sea. However, this week Russia is heard to have book 25,000 MT billet deal to Europe at USD 415/MT, FoB Black Sea.

Iran- Khouzestan Steel Company (KSC) – one of the leading exporters of Iran has concluded a billet export deal of quantity recently. The deal quantity is of 30,000 MT for size 150*150 mm, 5sp grade for Mar’20 shipment. As per market sources, the company has concluded the deal to South East Asia. The deal value was reported to be around USD 400/MT, FoB Iran.

SE Asia- The region’s billet import market witnessed limited trades over sharp drop in offers. Billet import offers in the region fell by USD 5-10/MT W-o-W. The major reason which was driving the price drop in the region are recently fallen Turkey’s imported scrap prices. SteelMint assessment for billet import offers in SE Asia is at USD 430-440/MT, CFR, down USD 5-10/MT against last week.

India- Vizag Steel – a government of India owned mill had floated ocean export tender for 30,000 MT Bloom of size 150*150mm. The material offered was of grade 4SP and had specifications C-0.17-0.23%, Mn- 0.6-1%, Si- 0.1-0.35%, P-0.05% max and S- 0.05% max. The tender was due on 10 Jan’20. According to market sources report to SteelMint, the company has concluded the tender at around USD 420-425/MT, FoB India. The material shipment is to be made by 31 Jan’20.

A government of India company had floated bloom export tender for 18,900 MT quantity and 150*150mm size. The cargo will be shipped by mid Mar’20. As per sources, the tender received bids around USD 420/MT, FoB India however it could not be confirmed till the time of publishing this report.

China- Chinese domestic billet market was settled at RMB 3,300/MT, down RMB 30 against last week. The market sentiments in the country were reported weak amid upcoming New Year holidays.

SteelMint’s assessment for HMS 1&2 (80:20) from USA origin stands at USD 285-290/MT CFR Turkey, down by over USD 15/MT against last week, while the assessment from Europe stands at USD 280/MT CFR.

Imported scrap trades to Turkey had remained slow since the beginning of the New Year. Trade sources indicated that amid falling finished steel demand, buyers aren’t actively procuring material at high offers.

Global Billet prices:

Source: SteelMint Research