Weekly round-up: Bearish sentiments weigh down global billet market

The global billet market witnessed dull sentiments and limited trading activity this week due to several factors like fall in Iranian billet export prices ahead of the Ramadan holidays and the announcement of export tariffs by the country’s government and bid-offer disparities in the Indian market.

The volatility in China’s SHFE rebar futures throughout the week also led to a fall in global billet prices. According to data maintained with SteelMint, China’s rebar futures contract for October 2022 delivery on SHFE closed today at RMB 4,910/t ($745/t), a fall of RMB 54/t ($8/t) w-o-w.

Market highlights

• Indian ocean billet export trade subdued: Indian BF-grade billet export market remained inactive on low bids and weak demand. Lower tariff rates for Iranian billets and China procuring material from Russia may impact Chinese demand from India. However, Indian mills may not lower their offers as they are getting decent realisations in the domestic finished steel market. SteelMint’s bi-weekly price assessment for Indian billet exports (150*150mm, 3SP/4SP, BOF route) stood at around $750/t FOB on 29 April 2022, down by around $8/t w-o-w.
• Iranian billet export prices fall in recent trade: Iranian billet export prices declined further on low bids, limited trade and the recent imposition of export tariffs. An Iranian mill has concluded an export deal for 40,000-50,000 t of steel billets at around $666/t FOB for the early-June 2022 shipment. Iran’s billet export prices fell marginally by around $17/t as against the last concluded tender in mid-April. Meanwhile, another 40,000-50,000 t slab export tender was concluded by an Iranian mill at around $687/t FOB for the mid-to-end-June 2022 shipment. Iranian slab export prices corrected by around $60/t m-o-m. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at $670/t FOB on 29 April 2022, down $7/t, w-o-w.
• SE Asia billet import prices continue downtrend: South East Asia’s imported billet prices continued its downward trend this week amid low buying interest and subdued finished steel sales. SteelMint’s bi-weekly assessment of billet (150*150mm, 3SP) imported by the Philippines stood at around $755/t CFR Manila, a sharp fall of around $45/t w-o-w.
• Vietnam’s billet export offers down: Vietnam’s BF-route billet export offers stood at $710/t FOB, down $20/t w-o-w. Weaker sentiments continue to weigh down offers. However, no deals were heard to have been concluded this week even at comparatively lower offers.
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country hovered at around $770-775/t CFR, a decrease of around $10-15/t w-o-w. Also, offers from Iran were heard at around $730/t CFR which are lower compared to the previous offers.
• China’s billet prices fall towards weekend: Steel billet prices in China’s Tangshan witnessed a fall of RMB 50/t ($7/t) w-o-w. Prices stood at RMB 4,740/t ($717/t), inclusive of 13% VAT, on 29 April 2022.