IRON and STEEL
Chinese billet prices notice stability after a sharp fall. Domestic prices increased by RMB 60 ($9) in last two days.
Chinese domestic billet prices observed some rebound on Thursday amid improved export enquiries, SteelMint learned from market sources.
Major billet producers cumulatively increased billet prices by RMB 50 ($7) to RMB 3100 ($447), ex-Tangshan, China, including 17% VAT.
Chinese exporters report rising enquiries for wire rods and billets from China at these levels.
"Prices had decreased too sharply in domestic market and exporters have been waiting. If they feel prices have bottomed out, they will start buying. We expect some transactions to resume from next week," said a trader.
Indian exporters who largely deals with Nepal are poised over limited deals. Nepal's re-rollers have limited their purchase for Billet & Wire rod on account of sufficient stock & low demand, which raised liquidity crunch, as per participants.
Iran, one of the largest billet exporter in MENA region is currently facing economic sanctions from US, owing to which the steel export has affected badly. Iran has exported 1,806,000 MT billet and bloom during the first seven months of current Persian year (21-Mar till 22-Oct’18).
Chinese mills have resumed billet exports owing to falling prices in domestic market, but we do not see volumes to reach 2015 levels.
Steel Authority of India (SAIL), an India state owned steel mill, has cancelled 16,200 MT billet export tender which bid due date was on 3rd Dec'18, SteelMint learned from market sources.
Iranian Domestic Billet Offers Hit All Time Low since Sep’19 owing to appreciation of Rials against USD.
A steel billet export vessel arrives at Indian port on 2nd Dec, 2018, from Iran, which is likely to be re-routed to Thailand, SteelMint learned from market participants.