STEEL BILLET MARKET ROUNDUP FROM MEPS
Buying sentiment has weakened in the Chinese market. Sales
volumes of finished steel and semi-finished steel products were muted in the
period following the Mid-Autumn Festival. Local traders are convinced that
negotiated settlement prices will fall again after the “Golden Week” holiday in
CIS billet producers have downgraded their price and sales volumes forecasts for
the fourth quarter. Tonnages designated for overseas sales remain limited.
Bookings from Asian, Middle Eastern and Turkish buyers were weaker than
projected. Quotations for material traded out of Black Sea and Far East ports
were reduced in the first and third week of September as a result.
The trading environment remains challenging in Turkey. Integrated producers have
found it difficult to transfer the burden of soaring production costs on to
their customers, following recent depreciation of the national currency against
the US dollar. Billet exporters have also had mixed success in their efforts to
finalise deals with overseas clients. The price premium for domestic billet
material relative to imports is unchanged at less than $US5 per tonne.
In the United Arab Emirates, negotiations between local re-rolling mills and
foreign suppliers are expected to remain difficult in October, in view of the
downward movement being witnessed in other global billet markets. The bargaining
positions of the latter have been damaged by the softening in global ferrous
SE Asian re-rollers plan to persevere with conservative buying strategies in
October. The majority are unwilling to purchase material at the current price
levels. Procurement activity in the Philippines has been unsettled by extreme
weather patterns and weak downstream demand for finished steel products.
Source: MEPS -
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