Uncertainty increased in the global steel market last week as the Covid-19 spread impacted the outlook for many of the largest steelmaking and steel-consuming countries. While Chinese iron ore prices are holding up relatively well, billet prices have come under increasing pressure. Billet prices are often a good indicator of overall steel market sentiment, and they are equally impacted by both iron ore price movements and scrap outlooks.

CIS billet export prices continued to slide amid limited demand and low bids from buyers in the market last week. Traders reported an increasing number of requests for contract price amendments and cancellations amid waning industrial activity bought on by the spread of Covid-19 worldwide and plunging oil prices.

Turkish buyers were bidding $350-360/tonne fob Black Sea equivalent, having booked some Russian billet at $370/t fob Black Sea the week before. Tunisian buyers are indicating $350/t fob, which, traders say, they are as yet unable to match, although expectations are for CIS billet prices to continue to soften in the coming weeks. 
The booking of US-origin scrap by a northern Turkish mill at around $247.50/t cfr for premium HMS 1/2 80:20 grade material at the beginning of last week further emphasised the descending trend.