The situation in the Far Eastern market has worsened too. Although there is still demand for billet, Asian buyers have become less flexible. Whereas in the second half of March some of them accepted $675-685/t C&F ($655-665/t FOB), at present they bid by $10-20/t lower for CIS material, having the opportunity to purchase material from regional suppliers, for which there are less strict custom regulations in some countries, at similar prices.
Major trading companies are reportedly offering billet with May shipment to SE Asia at $670/t C&F ($650-655/t FOB).
Evraz Holding is still out of the market; the company plans to start offering May output in mid-April. In view of the situation in the region and expected undersupply, it will presumably set quotations at $655/t FOB.
Meanwhile, the Caspian region is still experiencing a holiday lull. Outlook for the situation in Iran remains vague; market participants are in a wait-and-see position now. However, there is still hope for an upswing in buying activity, taking into account the government’s plans to increase investments into construction sector.
( Source: www.metalexperts-group.com )