On October 2, SteelOrbis reported ex-Brazil billet offers to the US and other countries at $498-505/mt FOB Brazilian port.
Sources inform SteelOrbis that ex-Brazil billet is currently on offer to Europe and Asia as low as $490/mt FOB Brazilian port, with the overall range widening to $490-510/mt FOB Brazilian port. This range represents a price decline of $8/mt from the bottom of the previously reported range and an increase of $5/mt from the top of the previously reported range. The wide range is attributed to a mixed perspective in the market. On the one hand, some eager firms are providing discounts for large volume commitments for shipment in November and December while a few other companies “have expectations of a sustainable upswing later in October.”
A source stated, “I expect billet to oscillate around the present prices if rebar from Turkey and China generally hold near present numbers, and the global scrap prices trend sideways into November.” She added that the wild card is ex-China billet export volumes given the closing of some Chinese domestic re-rollers and continued high crude steel production, since an increase in billet exports could dampen prices internationally.