Weekly round-up: Global billet prices under pressure as China returns to export market

Negative sentiments continued to prevail this week in the global billet market due to factors such as bid-offer disparities, absence of firm buying interest, return of Chinese billets into the market, falling global scrap prices and drop in bids from key importing countries, which resulted in limited deals. Meanwhile, global billet prices are under pressure with news of Chinese exports coming in.

A sharp decline in rebar futures also weighed on billet prices, SteelMint notes. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,490/t ($481/t) on 28 October, a sharp fall of RMB 140/t ($19/t) w-o-w.

Market highlights

• Iranian billet export prices likely to drop: 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, although KSC’s tender is likely to be concluded early next week. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $480/t FOB on 26 October, stable w-o-w. However, market sources opined that export prices are likely to drop by $10-15/t next week or so, given weak demand and the drop in global scrap prices.
• SE Asia’s billet import prices fall w-o-w: Price indications of imported billet into South East Asia fell this week due to lower bids, fall in scrap prices and the return of Chinese mills in the export market. SteelMint assessed import prices at $520/t CFR Manila on 28 October, a decline of $13/t w-o-w. Meanwhile, an unconfirmed deal of 150mm/5SP Chinese billet was heard concluded at $520/t CFR Philippines.
• Vietnam’s billet export offers unchanged w-o-w: Vietnam’s BF-grade billet export offers stood unchanged at around $490/t FOB. A weak scrap market on the back of a decline in rebar consumption in the region weighed on billet export offers, SteelMint understands.
• China’s billet prices fall on weak market sentiments: Steel billet prices in China’s Tangshan fell sharply by RMB 100/t ($14/t) w-o-w. Prices stood at RMB 3,510/t ($484/t), including 13% VAT on 28 October. Bearish market sentiments, drop in futures, finished steel and iron ore prices weighed on domestic billet prices.