Bottoming steel scrap and billet levels might kick start buying activity

After severe mauling over the past 3 weeks during with scrap and billet levels plummeted by USD 30 per tonne and USD 15-20 per tonne respectively bottom seems in vicinity.

Some recent transactions of rebar and billet UAE and Turkish mills albeit at low levels indicates increasing interest in buying lest the price goes up with warming weather.

It is learnt that scrap levels have bottomed out USD 345-350 per tonne level whereas billet from Black Sea has already touched nadir at USD 485 -490 per tonne. Undoubtedly buyers in UAE have been able to squeeze rock bottom levels for rebar owing to low scrap levels. Recent deal has been reported at USD 565 per tonne CFR, (Theoretical wt) about USD 5 per tonne lower than the last deal prices.

Like-wise in billet Turkish mills have opened buying having concluded deal at USD 485-490 per tonne FOB Black Sea.

Coming days are expected to throw up better levels with buying activity picks up owing to low price levels and improved construction activity during summer.