BILLET MARKET ROUNDUP FROM MEPS

CIS exporters, operating in the Caspian Sea and Far East ports, issued higher quotations in September. Tonnages designated for overseas sales were limited due to ongoing maintenance work. Buying volumes in the Black Sea region was weaker than forecast. European buyers held lower price expectations. Trade with Turkey and the Middle East did not exhibit any signs of recovery in the post Ramadan period.

In China, average billet transaction values grew by 0.3 percent in week 37. Hebei was the only province that experienced negative price growth. Local traders believe that billet prices will continue to be variable for the rest of 2011.

In India, the Supreme Court’s ruling on iron ore mining activities in Karnataka has had no immediate impact on billet transaction values. Primary producers rolled over their billet prices in September, whilst offers by secondary producers shadowed input costs.

The business climate in Iran stabilised in week 37. Local traders report CIS suppliers were unable to direct sufficient volumes to the Caspian Sea region. This has exerted upward pressure on import offers. CIS material is subject to a 4 percent import duty.

Turkish steelmakers were slow to recommence trading in September. They wanted to observe the markets. Shipments to domestic and Middle Eastern clients fell short of market projections. CIS export offers were more expensive than domestic material. Consequently, suppliers struggled to sell their material.


Source: MEPS - Semi-Finished Steel and Ferrous Scrap Review

Also see: MEPS - Billet Price Table

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