Weekly round-up: Global billets prices head southwards on bearish sentiments

The global billets market remained muted this week on bid-offer disparities, weak steel sentiments and limited trading activity.

The volatility in Chinese SHFE rebar futures throughout the week also pulled down prices. According to data maintained with SteelMint, China’s rebar futures contract for October 2022 delivery on the Shanghai Futures Exchange (SHFE) closed on 23 Apr’22 at RMB 4,964/t ($763/t), a fall of RMB 85/t ($13/t) w-o-w. Also, the same witnessed a sharp fall of RMB 94/t ($14/t), d-o-d.

Market highlights

• Iranian billets export market less active: The Iranian billets export market remained less active after a deal was concluded last weekend. An Iranian mill concluded an export deal of 25,000 t of billets (150mm) at around $683/t FOB Iran for mid-June shipment. Prices corrected by $12/t compared to last week. Meanwhile, Khouzestan Steel Company (KSC) floated an export tender for 40,000-50,000 t of steel billets with the due date being 27 April 2022. The shipment is likely to be scheduled for early June 2022. Iran’s exports of billets and blooms totalled 5.97 mnt in the last Persian year (21 March 2021-20 March 2022), registering a 12% rise compared to the same period last year. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at $670/t FOB on 22 April, down $25/t w-o-w.
• SE Asia billets import prices continue downtrend: South East Asia’s imported billets prices continued the downward trend this week amid low buying interest and subdued finished steel sales. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $795/tonne (t) CFR Manila, a fall of $10/t w-o-w.
• Vietnam’s billets export offers down: Vietnam’s BF-route billets export offers stood at $730/t FOB, down $20/t w-o-w. Weaker sentiments continued to weigh down offers. However, no deals were heard to be concluded this week even at comparatively lower offers.
• Thailand’s imported billets prices fall: Indicative imported billets prices into the country hovered at around $780-785/t CFR. But, firm bids were heard lower by $30/t against current offers.
• Silent offers from Russia: Some silent billets export offers from Russia were heard this week. Offers were at around $720-740/t FOB, comparatively lower than other origins.
• China’s billets prices edge down towards weekend: Steel billets prices in China’s Tangshan witnessed a decrease of RMB 20/t ($3/t) w-o-w. Prices stood at RMB 4,790/t ($737/t), inclusive of 13% VAT, on 22 April.