The upward trend of ex-CIS billet prices which had started in the middle of February came to a halt towards the end of last week and then prices started to fall, while demand for ex-CIS billet is weak as prices soften. During the past week, ex-CIS billet prices have declined by $20/mt on the lower end and by $15/mt on the upper end to $530-540/mt FOB.
The uncertainties caused by the 25 percent Section 232 import tariff in the US have increased following the EU's announcement at the start of the current week of a safeguard duty investigation. As a result, sentiment in the global steel market is now on the pessimistic side.
International buyers’ expectations of a fall in steel prices have strengthened, exerting downward pressure on ex-CIS billet quotations amid the abovementioned developments, while the declines seen in Chinese billet export prices as of the beginning of March to below the $500/mt FOB mark on Friday, March 23, have also contributed to the pressure on ex-CIS billet prices. Chinese billet export prices have mostly moved sideways in the current week and are currently at $480-505/mt FOB. The downward pressure exerted on global billet prices is expected to be maintained as domestic steel demand in China has failed to improve in line with initial expectations, while Chinese billet suppliers are once again pursuing a competitive price policy in their export markets. The declining trend of global scrap quotations is also a factor in the downward pressure on billet prices.
Ex-CIS billet offer prices to Turkey have moved down by an average of $20/mt week on week to $550-555/mt CFR. Meanwhile, CIS-based suppliers’ billet offers to Egypt are in the range of $550-560/mt CFR.