Weekly round-up: Global billet market subdued on weak sentiments

The global billet market remained flat throughout the week on weak steel sentiments. Also, the volatility in China’s SHFE rebar futures and bid-offer disparities kept trades at bay.

According to data maintained with SteelMint, China’s rebar futures contracted for October 2022 delivery on SHFE closed on 6 May at RMB 4,734/t ($710/t), a fall of RMB 176/t ($26/t), w-o-w. Meanwhile, the same witnessed a sharp fall of RMB 189/t ($28/t), d-o-d.

Market highlights

• Indian Ocean billet export market subdued: Indian BF-grade billet export market remained almost at a standstill amid low and fluctuating bids against the backdrop of holidays and a fall in global scrap prices. In a recent tender floated by an Indian mill, limited participation was heard, as per sources.
• Iranian billet export market silent during Eid holidays: Iranian billet export market remained silent this week owing to the ongoing Eid holidays which kept market participants on the sidelines. However, a few export deals were heard to be concluded just before the holidays. An Iranian mill has concluded an export deal for 40,000-50,000 t of steel billets. The deal was concluded at around $665/t FOB for the early-June 2022 shipment. Amidst holidays, the Covid surge in China and cheaper Russian billet cargoes have kept Iranian mills away from placing offers this week, sources highlighted. The power supply shortage again surfaced causing hindrance for the Iranian steelmakers. As per the reports, the government is expected to announce some limitations soon to overcome the matter. SteelMint’s latest assessment of Iranian billets (3SP) export prices stood at $670/t FOB on 6 May, unchanged, w-o-w.
• SE Asian billet import market quiet as bearish sentiments prevail: South East Asia’s imported billet market remained silent throughout the week amid low buying interest, Ramadan holidays and subdued finished steel sales. SteelMint’s bi-weekly assessment of billet (150*150mm, 3SP) imported by the Philippines currently stands at around $755/tonne (t) CFR Manila, stable, w-o-w.
• Vietnam’s billet export offers unchanged: Vietnam’s BF-route billet export offers stood at $710/t FOB, unchanged, w-o-w. Weaker market sentiments such as falling prices of raw materials and domestic scrap continue to weigh down offers. However, no deals were heard to have been concluded this week.
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country were hovering at around $740-750/t CFR, a fall of around $25-30/t, w-o-w. Also, offers from Iran were heard at around $710/t CFR which is around $20/t lower compared to the offers from last week.
• China’s billet prices edge up post-Labour Day holidays: Steel billets prices in China’s Tangshan witnessed an increase of RMB 20/t ($3/t) w-o-w. Prices stood at RMB 4,760/t ($714/t), inclusive of 13% VAT, on 6 May.