Weekly round-up: Global billet market sentiments subdued amidst thin trading

The global billet market witnessed dull sentiments throughout the week due to several factors including bid-offer disparities in the Indian market, the absence of firm buying interest and a drop in bids from key importing nations resulting in limited deals.

Market highlights

• Indian billet export market inactive: Indian blast furnace (BF)-grade billet export prices continued to remain under pressure amid low demand from key importing nations. Falling sentiments in a sluggish market impacted the billets market. The gap in bids and offers widened owing to increased prices in the domestic market. An Indian mill had floated an ocean sale export tender for 18,900 t of prime mild steel non-alloy concast billets (125x125x9000/12000 mm, 4SP/5SP) with the due date for the tender being 27 June and the delivery scheduled for 31 August. According to market sources, the tender received very limited participation and may not be concluded.
• Iranian billet export prices drop further: Iran’s billet export market remained inactive this week, with prices falling further in recently-concluded deals. Declining global prices, low bids, limited trade and cheaper billet offers from Russia continued to weigh on billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 30,000 t of billets at around $515-520/t FOB Iran for August shipment. Iran’s billet export prices have corrected by $12/t as against the last-concluded tender last week. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $500/t FOB on 1 July, down $30/t w-o-w.
• Billet import prices in SE Asia flat w-o-w: South East Asia’s imported billet prices remained unchanged this week amid lower bids, limited trade and weakened finished steel sentiments in the region. SteelMint’s bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at around $585/t CFR Manila, stable on week.
• Vietnam’s billet export offers edge down w-o-w: Vietnam’s BF-grade billet export offers stood at around $540-550/t FOB, a w-o-w decrease of around $15/t. However, no significant deals were heard concluded at current offers.
• China’s billet prices rise towards weekend: Steel billet prices in China’s Tangshan witnessed a significant rise of RMB 100/t ($15/t) w-o-w following a recovery in rebar futures. Prices stood at RMB 4,000/t ($597/t), inclusive of 13% VAT, on 1 July. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,265/t ($636/t) on 1 July, witnessing an increase of RMB 76/t ($11/t) w-o-w.