The global markets for steel billet were affected by steady scrap prices in the week ended Friday September 14, after a surge in the previous week, but buyers were reluctant to increase their purchasing activity because of high inventories and weak demand for finished steel.
Metal Bulletin’s daily index for Northern European HMS 1&2 (80:20) closed at $314.17 per tonne cfr Turkey on September 14, up from $313.58 per tonne cfr on September 7. Prices in the Commonwealth of Independent States (CIS) and Turkey showed slight increases, but demand in Southeast Asia and Egypt was low. CIS, Turkey Demand for CIS-origin billet in most buying regions was weak, because customers saw unfavorable conditions in the finished steel markets and inventories were reported to be high. Metal Bulletin’s daily index for CIS export billet edged up to $478 per tonne fob Black Sea on Friday, from $476 per tonne fob Black Sea in the previous week. The effect of the rise in scrap prices on the billet market diminished last week and buyers remained cautious. In the beginning of the week, a cargo of Ukrainian billet was sold to a trader at $472-475 per tonne fob Azov Sea, with pre-payment.