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.
Formosa Ha Tinh Corporation (FHS), Vietnam’s largest steel manufacturer of the country has revealed the billet export offers today for shipments scheduled by July. The price offered by the company is reported to be USD 465/MT, FoB, up marginally by USD 4/MT against last month.
The dullness in the Iranian market continued for this week as well, market sentiments have remained marginally down with limited trades being witnessed this week. Imposition of sanctions from US on Iran is dampening the market sentiments.
Indian Billet & Wire rod export offers to Nepal fell by USD 5-10/MT W-o-W, following declining offers in domestic market. However with falling export prices, purchases have improved by Nepal based mills.
Indian Billet prices slightly fluctuated by INR 100-300/MT on average trade inquiries amid less clarity in market directions whether the prevailing price range will sustain or may report sharp change in coming days.
Weakening demand of finished products has lowered furnaces margins (conversion spread) which in turn has weakened buying interest of pig iron in Indian domestic market.
SteelMint learned in recent conversations with industry participants that imported scrap offers in containers to Pakistan have shown stability after observing softening towards the closing of the last week