In This Topic, We Shall Discuss the Global-View on Stainless Steel Billet and Downtrend Reverses in Some Markets, Mainly Cost-Driven.
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The downward trend in the global billet market over the past few weeks has been reversed this week in some key selling points - notably Turkey - with prices rising rapidly.
This unexpected move is related to the sharp increase in energy prices in Turkey, which has increased the price of long-term products in the country and led to an expected increase in billet import prices soon.
In addition to the increase in the Russian billet price index, other large Iranian exporters have also managed to sell at higher prices due to the conditions in Turkey this week.
Although the sustainability of this trend is doubtful mainly due to the situation of Iran in Asia.
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China and Southeast Asia have not recovered and have been poor in terms of demand and prices.
In Turkey, the announcement of a 50% increase in electricity and gas bills for local industries is expected to significantly increase the high production costs of domestic steel mills.
|Disadvantage||High Shipping Rates|
|Other Productions||Semi-finished Products|
|Shipments Costs||$700-720 per Ton Fob|
As a result, EAF-based billet production is expected to decline, and fewer semi-finished products will be sold on the open market.
This could increase billet imports, especially for Turkish rollers who do not have many options and Russia is a stable and available source despite international sanctions.
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Billets from Iran and the GCC may also be in the picture, but high shipping rates and long lead times generally make them less competitive.
On the other hand, despite more opportunities for ex-Russian sellers.
Turkish billet demand and prices are generally expected to be limited due to low demand for long products and an overall reduction in finished steel production.
Some imported billets were at $535-$550 per ton CFR at the beginning of the week, and $560 per ton CFR was also considered acceptable in the middle of the week.
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Some sources said the acceptable level on Friday was up to $590 per ton CFR.
Even before Turkey announced new electricity and gas tariffs, a cheap Russian offer from a supplier disappeared last week.
The reference price of former Orbis steel bullion in Russia rose by $15 per ton to $510-515 per ton fob.
Prices rose $10 a ton to $520-525 a ton fob on Thursday.
Finally, on Friday, prices reached $540-550 per ton fob the Black Sea, up $47.5 per ton on the week.
The current level is more indicative, as most suppliers from Russia have been waiting for clearer market conditions and have requested firm offers.
The number of sellers in the market is still small.
Turkey's lang producers increased their export prices drastically due to the 50% increase in the price of electricity and natural gas.
However, there are concerns about whether increased demand will be enough to support the new price level.
Turkish export rebar prices for late September-October shipments are $700-720 per ton fob, compared with $645-670 per ton fob a week ago.
Many believe that the new proposed levels are somewhat overvalued, saying that due to the recent hike, costs are expected to increase by around $20-$25 per ton, compared to $50-$55 for export rebar.
The Answer to Two Questions About Stainless Steel Billet
1: What does billet in terms of metal mean?
The word billet describes the shape of the metal utilized in the manufacturing procedure, not the procedure itself
2: Is billet more durable than steel?
When we say a product is made from billet aluminum or billet steel, some folks have some misconceptions about what that means