Stable Square Billet Prices Reflect Weak Export Demand
Square billet prices stayed stable across major regional markets in June. Price fluctuations did not exceed $5 per ton. This stability results from weak export demand worldwide. The Black Sea region, a key steel trade hub, recorded prices between $433 and $435 per ton on FOB terms. These prices remain attractive, especially for Turkish buyers. Domestic prices in Turkey are higher, such as Kardemir’s, which fell $15 to $485-$495 per ton.
In Tangshan, China, prices ranged from $402 to $406 per ton. Demand remains weak despite price cuts since March. This caused rising inventories and temporary plant shutdowns. The China Iron and Steel Association (CISA) worries about growing billet exports. They recommend export limits to stabilize the market.
Regional Variations in Square Billet Pricing and Forecasts
Price stability also appeared in Saudi Arabia, where billets cost $500-$503 per ton Ex-Works. Indonesia’s prices ranged from $443 to $445 per ton CFR. Italy had the highest prices in May, rising $5 to $562 per ton Ex-Works. Overall, average prices fell $10 per ton in May. Mid-month gains were lost by month-end.
The National Bank of Ukraine (NBU) predicts steel billet prices will drop 5.2% to $478 per ton FOB Ukraine in 2025. Moderate price growth is expected later, reaching $492 per ton in 2026 and $502.5 per ton in 2027. This suggests a slow market recovery.
SuperMetalPrice Commentary:
Square billet price stability reflects ongoing weak demand worldwide, especially in China and the Black Sea. Export controls and local factors create complex pricing. Industry watchers should track inventory levels and geopolitical changes. Tariffs and export limits will impact prices. The forecasted price rise shows cautious optimism. Still, supply-demand imbalance remains a key concern.
Leave a Reply
You must be logged in to post a comment.