On September 19, sources informed SteelOrbis that ex-Brazil billet offers to the US and other countries were at $510-520/mt FOB Brazilian port.
According to sources, ex-Brazil billet offers to the US and other countries are now at $498-505/mt FOB Brazilian port. This range represents a decline of $12/mt from the bottom of the previously reported range and $15/mt from the top of the same range.
A source noted that the direction of billet pricing is unknown given the presence of various global market pressures. On the one hand, production constraints in China on raw goods and finished steel due to environmental reasons should tighten the supply of various steel materials domestically and for export, thereby keeping prices high. Additionally, billet is expected to be in demand globally due to the high cost of graphite electrodes.
On the other hand, some large cities such as Tianjin and Beijing in China are expected to impose bans on construction from various timeframes in the fourth quarter into the first quarter of 2018. The source stated, “Billet could go up, down or sideways depending on how these scenarios play out but it would be poor political timing for China to allow mass, price-dampening exports. We may be at a sustainable equilibrium for the remainder of the year.”