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

Negative sentiments continued to prevail this week in the global billet market due to bid-offer disparities as well as absence of firm buying interest resulting in limited deals.

Market highlights

• Iran’s billet export market muted: Iran’s billet export market remained silent this week with prices remaining stable w-o-w. No deals for exports were recorded by SteelMint so far. Meanwhile, a major Iranian semi-finished steel exporter, Chadormalu, floated an export tender for 30,000 tonnes (t) of steel billets with the due date being 6 September. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $456/t FOB on 30 August, stable w-o-w.
• SE Asia billet import market inactive: South-East Asia’s imported billet market continued to remain silent on low buying interest amid subdued finished steel demand in the region and bid-offer disparities. SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $538/t CFR Manila, a marginal increase of $1/t, w-o-w. Billet offers from Dexin were heard at around $545-550/t CFR Manila. Price indications in Indonesia were assessed at around $515-520/t, CFR Indonesia for Iranian origin.
• Vietnam’s billet export offers rangebound: Vietnam’s BF-grade billet export offers were rangebound w-o-w at around $530/t FOB. According to market sources, trade activities were mostly absent throughout the week and demand for semi-finished steel was remained subdued owing to public holidays. However, increased scrap prices are supporting billet offers.
• China’s billet prices slump towards weekend: Steel billet prices in China’s Tangshan fell by RMB 110/t ($16/t) w-o-w following a sharp decline in rebar futures. Prices stood at RMB 3,660/t ($530/t), including 13% VAT, on 2 September. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,637/t ($527/t) on 2 September, a sharp decrease of RMB 460/t ($67/t) w-o-w.
• China’s imported billet market subdued: SteelMint’s bi-weekly assessment for billet import prices currently stands at $485/t CFR, an increase of around $15/t, w-o-w. However, preference for domestic billets still prevails amid weak end-user demand, SteelMint notes.