London (Platts)--26Sep2011/224 pm EDT/1824 GMT
Decreasing export prices for steel billets shipped out of the Black Sea gathered pace Monday with $20/mt wiped off the Platts assessment as traders negotiated lower prices with supplying mills in Ukraine for October delivery.
Traders and mills with unsold positions for loading in October could see no premium for prompt material as buyers held off from bidding firm in the current market or November supply.
Platts reduced its Black Sea billet assessment by $20/mt to $652.50/mt FOB as a $640-680/mt price range was heard from mills and traders. There was a far greater likelihood of trade activity at the lower end of the range following softening global financial markets.
The Platts Black Sea billet assessment fell from a peak so far this year of $682.50/mt FOB last seen September 15. October supplies said to be tied up with traders and end-users have seen a sudden unwinding and the backwardation with November collapsed.
One Russian supplier said to normally only sell direct to users and not to traders, is offering widely in the market at $650/mt FOB, but no one is buying, said a trading source, based on information from the group's Ukraine office. Other offers available are at $670/mt FOB, the trader said.
Some mills in the region however did not deem $655-660/mt FOB achievable and would take bids for November on this basis.
MARKET 'LONG' HAMPERS BIDS
A trader heard $650-660/mt FOB for November shipment on offer, and stated $650/mt was the maximum bid level. The source would not pay more for offers with October laycans, "as the market is long." Turkish billet offers are holding out for October, but these prices are unlikely to be met, the trader said.
The drop in prices may lead mills to slash output in response to reducing demand in the long steel complex, rather than let the correction extend much farther.
A source at a large international trader said offers for October production are now down to $645-655/mt FOB Ukraine from one mill for 10,000 mt.
He said there were a number of buyers reneging on contracts to buy, and said it could be that lower prices are being seen as a result of mills and traders having to find new business.
"They didn't accept $655/mt FOB bids last week. Well now everything is $10 lower."
REBAR OFFERS DROP IN TURKEY, UAE
Rebar markets heard of a decrease in Turkish export offers to $710/mt FOB, from $715-720/mt FOB last week.
At Monday's IREPAS international rebar exporters' group meeting in St. Petersburg, sentiment was bearish. The UAE's integrated producer Emirates Steel was said to have reduced its prices for October production sales by around $20/mt.
Platts Turkish export rebar assessment fell $5 to $705/mt FOB.
In the meantime, ferrous scrap price levels were said to be holding up, but with no deals heard done and pressure admittedly on the downside. European suppliers want to sell HMS I/II (80/20 blend) at $450/mt CFR Turkey, and with the euro falling the price can more easily come down in dollar terms, said a Benelux-based supplier. US prices for HMS 80/20 were said to hold at around the last trades, at about $470/mt CFR Turkey, scrap traders said.
Platts regional scrap assessment fell $5 to $467/mt CFR Turkish ports to reflect a weaker buying outlook from Turkish mills.
The A3 scrap assessment fell by $3 to $435/mt FOB Black Sea on a likely increase in material available should export demand fall and capacity be cut at regional mills. European scrap prices held at $417.50 FOB Rotterdam.
While the supplier trader said that "scrap is in a delicate balance," the sentiment in billet and rebar would indicate prices of the raw material are under pressure to lower and ensure the metal spread is maintained.
"Scrap is still steady.. what are the Turkish [scrap buyers] going to do, they would need the price to fall to $440/mt CFR to maintain margins," commented a billet trader.
Showing posts with label STEEL BILLET PRICES. Show all posts
Showing posts with label STEEL BILLET PRICES. Show all posts
Wednesday, September 28, 2011
Monday, August 29, 2011
STEEL BILLET prices
The London Metal Exchange's billet futures contract stands to shed stock from its global warehousing network after one major player canceled up to 75% of the physically-delivered contract's warranted tonnage Monday to sell material in the physical market, participants said Friday.
More trading houses participating in the futures contract joined the cancellation spree Tuesday, when canceled warrants reached 46,930 mt, or 84% of the total 55,380 mt LME billet stock, according to a source close to the activity.
Total stocks in the exchange's registered warehousing network have fallen every day but one since Monday, finishing the week at 54,015 mt -- the lowest since August 16.
Users of the contract hoped that the cancellation signaled warranted billet being moved to a different warehouse, perhaps having found better incentives from another warehousing firm.
Even the possibility of the material being re-warranted at the same warehouse was talked about; but this is not the case, in small part due to charges for putting material back on warrant at warehouses, according to the source.
Now that the cash price on the LME contract has risen to $690-700/mt on a bid/ask basis -- compared with physical billet offers of $700-710/mt CFR Turkey from Black Sea suppliers -- the trading house will sell warehouse material to roll into reinforcing bar and other long products
A billet shortage in major commercial trading areas such as the Black Sea has driven up prices.
"The LME billet price was too low [compared with the physical market price] so people bought onto the contract a few months ago," the source said. "Those same people are now selling material they bought then on the physical market; unless the LME price rises to better reflect the physical market, this will continue to happen."
The LME cash price has risen to now better represent the price of buying physical billet and shipping it into warehouse, another source close the situation added.
This view is shared by other traders using the contract.
"I don't think what [the trader canceling warrants] has done is irresponsible: the movement of the contract into regions where there is no commercial billet trade diluted the LME cash price; weakening it and this has led to the situation this week," a third source said.
"Since the market moved away from Turkish and Black Sea markets to include warehouses where there is no major commercial trade such as the US and Western Europe, the differential between the LME cash price and the physical market widened to around $100/mt," the second source said. "Then somebody bought a lot of futures, sending the cash price up; this isn't helpful for the development of the contract though."
Interest in the contract from billet producers has been thin, and, after the illiquidity of the LME contract was exposed this week, it's unlikely to win any more favor among steel mills, the third source said.
More trading houses participating in the futures contract joined the cancellation spree Tuesday, when canceled warrants reached 46,930 mt, or 84% of the total 55,380 mt LME billet stock, according to a source close to the activity.
Total stocks in the exchange's registered warehousing network have fallen every day but one since Monday, finishing the week at 54,015 mt -- the lowest since August 16.
Users of the contract hoped that the cancellation signaled warranted billet being moved to a different warehouse, perhaps having found better incentives from another warehousing firm.
Even the possibility of the material being re-warranted at the same warehouse was talked about; but this is not the case, in small part due to charges for putting material back on warrant at warehouses, according to the source.
Now that the cash price on the LME contract has risen to $690-700/mt on a bid/ask basis -- compared with physical billet offers of $700-710/mt CFR Turkey from Black Sea suppliers -- the trading house will sell warehouse material to roll into reinforcing bar and other long products
A billet shortage in major commercial trading areas such as the Black Sea has driven up prices.
"The LME billet price was too low [compared with the physical market price] so people bought onto the contract a few months ago," the source said. "Those same people are now selling material they bought then on the physical market; unless the LME price rises to better reflect the physical market, this will continue to happen."
The LME cash price has risen to now better represent the price of buying physical billet and shipping it into warehouse, another source close the situation added.
This view is shared by other traders using the contract.
"I don't think what [the trader canceling warrants] has done is irresponsible: the movement of the contract into regions where there is no commercial billet trade diluted the LME cash price; weakening it and this has led to the situation this week," a third source said.
"Since the market moved away from Turkish and Black Sea markets to include warehouses where there is no major commercial trade such as the US and Western Europe, the differential between the LME cash price and the physical market widened to around $100/mt," the second source said. "Then somebody bought a lot of futures, sending the cash price up; this isn't helpful for the development of the contract though."
Interest in the contract from billet producers has been thin, and, after the illiquidity of the LME contract was exposed this week, it's unlikely to win any more favor among steel mills, the third source said.
Monday, July 18, 2011
steel billet prices, metal prices
Aluminium was last $5 lower at $2,489. Stocks dropped 7,950 tonnes to 4,404,225 tonnes ahead of ‘Third Wednesday’. Cancelled warrants - the metal booked for removal - fell 4,225 tonnes to 371,375 tonnes.
Copper inventories rose a net 925 tonnes to 462,950 tonnes, although cancelled warrants rose 1,500 tonnes to 21,575 tonnes.
Nickel, which had hit its highest since May 19 at $24,499 on Friday, lost $365 to $23,790. Inventories fell to a new low since March 2009 at 102,354 tonnes after an 840-tonne drop and cancelled warrants fell 708 tonnes.
Zinc was $52 higher at $2,427. Cancelled warrants rocketed 36,275 tonnes or 93.3 percent to 75,175 tonnes, with activity focused on New Orleans, while stocks fell 4,050 tonnes to 887,300 tonnes.
Lead, at $2,732, was $24 higher, while tin fell $100 to $27,100.
Steel billet was indicated at $565/585 versus $565/575 at Friday’s close. Cobalt lost $500 to $34,000/36,000 and molybdenum was at $32,300/36,500.
Copper inventories rose a net 925 tonnes to 462,950 tonnes, although cancelled warrants rose 1,500 tonnes to 21,575 tonnes.
Nickel, which had hit its highest since May 19 at $24,499 on Friday, lost $365 to $23,790. Inventories fell to a new low since March 2009 at 102,354 tonnes after an 840-tonne drop and cancelled warrants fell 708 tonnes.
Zinc was $52 higher at $2,427. Cancelled warrants rocketed 36,275 tonnes or 93.3 percent to 75,175 tonnes, with activity focused on New Orleans, while stocks fell 4,050 tonnes to 887,300 tonnes.
Lead, at $2,732, was $24 higher, while tin fell $100 to $27,100.
Steel billet was indicated at $565/585 versus $565/575 at Friday’s close. Cobalt lost $500 to $34,000/36,000 and molybdenum was at $32,300/36,500.
steel billet prices, metal prices
Aluminium was last $5 lower at $2,489. Stocks dropped 7,950 tonnes to 4,404,225 tonnes ahead of ‘Third Wednesday’. Cancelled warrants - the metal booked for removal - fell 4,225 tonnes to 371,375 tonnes.
Copper inventories rose a net 925 tonnes to 462,950 tonnes, although cancelled warrants rose 1,500 tonnes to 21,575 tonnes.
Nickel, which had hit its highest since May 19 at $24,499 on Friday, lost $365 to $23,790. Inventories fell to a new low since March 2009 at 102,354 tonnes after an 840-tonne drop and cancelled warrants fell 708 tonnes.
Zinc was $52 higher at $2,427. Cancelled warrants rocketed 36,275 tonnes or 93.3 percent to 75,175 tonnes, with activity focused on New Orleans, while stocks fell 4,050 tonnes to 887,300 tonnes.
Lead, at $2,732, was $24 higher, while tin fell $100 to $27,100.
Steel billet was indicated at $565/585 versus $565/575 at Friday’s close. Cobalt lost $500 to $34,000/36,000 and molybdenum was at $32,300/36,500.
Copper inventories rose a net 925 tonnes to 462,950 tonnes, although cancelled warrants rose 1,500 tonnes to 21,575 tonnes.
Nickel, which had hit its highest since May 19 at $24,499 on Friday, lost $365 to $23,790. Inventories fell to a new low since March 2009 at 102,354 tonnes after an 840-tonne drop and cancelled warrants fell 708 tonnes.
Zinc was $52 higher at $2,427. Cancelled warrants rocketed 36,275 tonnes or 93.3 percent to 75,175 tonnes, with activity focused on New Orleans, while stocks fell 4,050 tonnes to 887,300 tonnes.
Lead, at $2,732, was $24 higher, while tin fell $100 to $27,100.
Steel billet was indicated at $565/585 versus $565/575 at Friday’s close. Cobalt lost $500 to $34,000/36,000 and molybdenum was at $32,300/36,500.
Sunday, June 26, 2011
steel billet prices
LONDON, June 24 (Reuters) - Black Sea billet prices fell this week and are expected to fall further as demand shrinks on concerns about the health of the global economy and as tighter credit conditions cut investment in construction, a key billet consuming sector.
Traders quoted Black Sea billet offers at $640-660 a tonne free-on-board (fob) Russia and Ukraine, compared with $660-675 last week.
Tuesday, June 21, 2011
steel billet prices, rebar prices
Black Sea region billet at $660-675 a tonne fob
* Ramadan, summer heat slow down construction
* Turkish rebar prices fall to $725-735 per tonne fob
By Silvia Antonioli
LONDON, June 20 (Reuters) - Black Sea region billet offer prices were little changed this week but interest from buyers dropped ahead of Ramadan which will slow down construction activity in key import areas.
Traders quoted Black Sea billet offers at $660-675 a tonne free-on-board (fob) Russia and Ukraine, a similar level compared to last week but interest from buyers at this price levels was much weaker than earlier this month.
"Nobody is willing to pay more than $650 fob for Ukrainian material," said a source at a Turkish steel mill. "With Ramadan in August consumption will go down so nobody is willing to buy anything unless it is delivered after Ramadan."
* Ramadan, summer heat slow down construction
* Turkish rebar prices fall to $725-735 per tonne fob
By Silvia Antonioli
LONDON, June 20 (Reuters) - Black Sea region billet offer prices were little changed this week but interest from buyers dropped ahead of Ramadan which will slow down construction activity in key import areas.
Traders quoted Black Sea billet offers at $660-675 a tonne free-on-board (fob) Russia and Ukraine, a similar level compared to last week but interest from buyers at this price levels was much weaker than earlier this month.
"Nobody is willing to pay more than $650 fob for Ukrainian material," said a source at a Turkish steel mill. "With Ramadan in August consumption will go down so nobody is willing to buy anything unless it is delivered after Ramadan."
Monday, June 13, 2011
steel billet prices, copper prices, aluminium prices
Tin business was seen down to $24,650 per tonne when stops were triggered below $25,000 - the market had closed at $25,400 on Friday and has now fallen $8,950 or 27 percent from April's all-time highs of $33,600.
Bearish sentiment was compounded by rising inventories - up 155 tonnes at 22,230 tonnes, with the stockpile just 185 tonnes below its highest since April 2010.
Copper, which slipped back below the $9,000 on Friday, extended losses and flopped to $8,871, down $67 and near its lowest since May 25.
Warehouse stocks recorded a rare decrease, falling a net 2,175 tonnes from what were one-year highs to 475,750 tonnes. But cancelled warrants - the metal booked for removal - fell seven percent to 18,775 tonnes.
The supportive prop last week - industrial action at Chile's El Teniente mine - has also been removed, with operations normalised over the weekend, traders noted.
Aluminium business at $2,596 was down $25 and around the cheapest since May 27. Stocks declined for the 13th successive day - down 9,000 tonnes at 4,636,925 tonnes.
Elsewhere, lead eased to $2,505, a $40 loss. There was a 375-tonne fall in stocks to 321,825 tonnes but cancelled warrants fell 20 percent to 1,875 tonnes. Zinc slipped to $2,234, a $26 decline.
Nickel was trading at $22,350, a drop of $500, ignoring a 390-tonne stock fall, which reduced the total stockpile to 112,536 tonnes, a fresh low since August 2009.
Steel billet was quoted at a little-changed $550/557, while there was a 13-percent fall in stocks to 34,385 tonnes, the lowest since July 2010. The 5,200-tonne fall was all from Rotterdam.
In the minors, cobalt was quoted at a steady $35,000/38,000, with stocks falling five tonnes to 276 tonnes.
Molybdenum was stable at $35,000/37,500. Inventories were unchanged at 276 tonnes, but cancelled warrants jumped 36 tonnes to 42 tonnes - all in Rotterdam.
Bearish sentiment was compounded by rising inventories - up 155 tonnes at 22,230 tonnes, with the stockpile just 185 tonnes below its highest since April 2010.
Copper, which slipped back below the $9,000 on Friday, extended losses and flopped to $8,871, down $67 and near its lowest since May 25.
Warehouse stocks recorded a rare decrease, falling a net 2,175 tonnes from what were one-year highs to 475,750 tonnes. But cancelled warrants - the metal booked for removal - fell seven percent to 18,775 tonnes.
The supportive prop last week - industrial action at Chile's El Teniente mine - has also been removed, with operations normalised over the weekend, traders noted.
Aluminium business at $2,596 was down $25 and around the cheapest since May 27. Stocks declined for the 13th successive day - down 9,000 tonnes at 4,636,925 tonnes.
Elsewhere, lead eased to $2,505, a $40 loss. There was a 375-tonne fall in stocks to 321,825 tonnes but cancelled warrants fell 20 percent to 1,875 tonnes. Zinc slipped to $2,234, a $26 decline.
Nickel was trading at $22,350, a drop of $500, ignoring a 390-tonne stock fall, which reduced the total stockpile to 112,536 tonnes, a fresh low since August 2009.
Steel billet was quoted at a little-changed $550/557, while there was a 13-percent fall in stocks to 34,385 tonnes, the lowest since July 2010. The 5,200-tonne fall was all from Rotterdam.
In the minors, cobalt was quoted at a steady $35,000/38,000, with stocks falling five tonnes to 276 tonnes.
Molybdenum was stable at $35,000/37,500. Inventories were unchanged at 276 tonnes, but cancelled warrants jumped 36 tonnes to 42 tonnes - all in Rotterdam.
Wednesday, June 01, 2011
Steel Rebar Prices, steel billet prices
Ezz Steel said it raised its steel rebar price by 4.3 per cent to $788.1 per tonne (LE4,650) in June on the back of global rises and the hike in imported input prices of aluminium billet.
The leading market producer said that price would range between LE4,800 and LE4,850 for consumers.
The billet world price attained $665 per ton in May against $625 in April, a rise of 6.01 per cent. Imported scrap also soared 1.6 per cent to $432 per ton in May, according to a monthly report from the Metallurgical Industries Chamber.
The leading market producer said that price would range between LE4,800 and LE4,850 for consumers.
The billet world price attained $665 per ton in May against $625 in April, a rise of 6.01 per cent. Imported scrap also soared 1.6 per cent to $432 per ton in May, according to a monthly report from the Metallurgical Industries Chamber.
Tuesday, May 24, 2011
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