Weekly round-up: Global billet prices under pressure as Chinese suppliers return to 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 due to Chinese exports coming in.

Market highlights

• Iranian billet export prices drop: Iran’s billet export market showed some movement in the last week with prices declining by around $10/t w-o-w. An Iranian mill has concluded an export deal for 40,000 tonnes (t) of steel billets at $470/t FOB towards the beginning of this week and the shipment is scheduled for December. Prices decreased around $10/t against the last concluded tender in mid-October. However, market sources opined that export prices are likely to drop further in the coming days on weak demand. Iranian steelmakers are looking to improvethe  market via exports but demand expectation is very low owing to steep global inflation. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $465/t FOB on 4 November.
• SE Asia’s billet import prices fall w-o-w: South East Asia’s imported billet market remained largely inactive this week, with Chinese offers floating in the market. SteelMint’s bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at around $492/t CFR Manila, down by around $28/t, w-o-w.
• Vietnam’s billet export offers edge down: Vietnam’s BF-grade billet export offers fell marginally by around $5/t w-o-w to $485/t FOB. A weak scrap market and decline in rebar consumption in the region weighed on billet export offers, SteelMint understands.
• Thai buyers receive Chinese billet offers: Thailand’s billet market witnessed low buying amid bid-offer disparities. Imported billet offers from China stood at around $510/t CFR, as per sources. Thailand’s steel billet imports decreased significantly by 48.11% m-o-m to 67,196 t in September from 129,506 t in August, as per customs data. Total imports decreased by 17% to 2.04 mnt in January-September as against 2.46 mnt in the year-ago period.
• China’s billet prices fall towards weekend: Steel billet prices in China’s Tangshan fell by RMB 30/t ($4/t) w-o-w. Prices stood at RMB 3,480/t ($484/t), including 13% VAT on 4 November. Bearish market sentiments, volatility in futures and finished steel prices throughout the week weighed on domestic billet prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,562/t ($496/t) on 4 November, up RMB 72/t ($10/t) w-o-w.