STEEL BILLET MARKET ROUNDUP FROM MEPS
Indian billet transaction values, denominated in the
national currency, declined this month in two of the five regions surveyed by
MEPS. Local re-rolling mills are extremely resistant to paying more at present,
when there is a question mark over the direction of prices for domestic billet
material in January. Consequently, they are buying small tonnages only when it
is absolutely necessary to do so.
The business climate in the Turkish steel market remains difficult. A poorly
performing construction sector has led to lacklustre demand for finished steel
products. Domestic billet quotations have continued to be influenced by the cost
of ferrous scrap and other steelmaking raw materials. Exporting semi-finished
steel material to Europe and the Middle East has remained challenging amid stiff
competition from CIS suppliers.
Arduous business conditions persist in the Taiwanese steel market. However, MEPS
sources’ predict a slight improvement in market activity next year. The pricing
positions of foreign billet suppliers have come under renewed scrutiny.
Effective transaction values in the European Union, in US dollar terms declined
to $US520-525 per tonne (down 1.0 percent) over the period surveyed. Demand for
finished steel remains slow, although forecasts for 2014 are better.
The outlook for the United Arab Emirates’ market is unchanged. Local traders are
hopeful that underlying demand for finished steel products will improve in 2014.
Over the last twelve months, trading volumes have fallen short of industry
projections – particularly, from construction firms and pipe fabricators.
Moreover, local re-rolling mills have found it difficult to transfer the burden
of soaring production costs on to their customers.
Source: MEPS -
Also see: MEPS - Billet Price
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