India becomes new player in the billet market while prices try not to lose ground

During the last week and early this week, CIS origin billet was at around $430-440/mt FOB, for mid and late August loading. However, neither Turkish nor Italian buyers, despite the soaring domestic market prices, were not interested in billet purchases. Although the domestic market maintained the strong momentum in Middle East and Northern Africa, rolling mills in the mentioned areas were largely interested in prompt shipment cargoes since they were not able to foresee the situation in late August and September. Turkish domestic prices stabilized at $460-475/mt ex-works after Turkish mill Kardemir withdrew local price $467/mt ex-works last week. Long product exports, full till September, and continuous strong momentum of domestic market that lasted till the past two weeks caused Turkish producers not to act aggressively in billet sales. This week offers were at around $450-455/mt FOB for September shipments; however, not much demand from the market for these levels have been observed so far. Depressed Indian domestic market due to the monsoon season prompted export offers made out of the country. Indian producers are able to give low-price offers to Gulf and Middle Eastern markets against the competitors. Indian producers have asked for $420/mt FOB Indian ports last week and early this week. While the Gulf countries are showing more interest to these levels, Far East countries do not have affirmative attitude due to the slowing construction demand. SteelOrbis has heard that there were lower offers above levels towards the end of the week. Billet price, which showed a firm situation for weeks, started to stumble towards the end of the week. As is known, Turkish and CIS billets dominated the Mediterranean and Gulf markets. However, they have to compete with Indian billet since early June due to the adverse domestic market in India. There were Indian billet bookings concluded even in Gulf region. Since Middle East and Northern Africa did not show interest to offers, except the influence of Indian billet and prompt shipments, CIS origin billet offers have been heard at below $430/mt FOB Black Sea towards the end of the week. Turkish producers are not intending to reduce their offers below $450/mt FOB level for the time being.