Black Sea region steel billet was little changed this week and sales volumes were low as worries about political tension in North Africa and the Middle East, falling scrap prices and holidays in Iran, hindered sales.
Black Sea billet sold at $620-$630 a tonne free-on-board (FOB), a similar level compared with last week, traders said.
"There are three factors curbing sales and keeping prices stable: the war in North Africa and tensions in the Middle East, softening steel scrap prices and the holiday in Iran," said a European billet trader.
"The market is paralysed. There are few real transactions
Violence in Libya and political tensions in the Middle East were concerning investors and depressing trade in the area, a key importer of Black Sea steel billet.
Also, prices of steel scrap -- a key ingredient for steelmaking-- fell this week so billet consumers were postponing purchases hoping for lower prices, traders said.
Sales to Iran, a key buyer, were slow this week as offices were starting to reopen after the Persian New Year or Nowruz holiday last week, traders said.
"There is some demand but it is a matter of price," said a second billet trader based in Britain.
End users in the Far East were looking to buy billet at $660 per tonne cost-and-freight (c&f) and in the Persian gulf they were bidding at $660 c&f the trader added.
Sale prices for rebar and mesh quality wire rod, two other steel products used in construction, were also unchanged, at $470-475 and $395-400 fob Turkey per tonne , respectively.
Sales volumes fom wire rod were much better than for rebar and billet though, producers said.
"We have been literally swamped with orders for wire rod," said a source at a Turkish producer."We even had to reject some."
Wire rod is mainly used in construction but it also goes to other industries such as utensils production.
While steel demand from the construction industry remained weak, wire rod demand from other industries has increased, the producer said.
On the London Metal Exchange, the three-month billet contract FMD3=LX traded at $553 a tonne, it lowest since March 11.