Weekly round-up: Rising global scrap prices support billet offers

The global billet market saw dull buying interest, resulting in limited deals last week. However, a recovery in global scrap prices pushed up billets offers, SteelMint notes. Turkiye’s imported scrap trade improved and offers moved up by $7/t w-o-w.

A hike in rebar futures also supported billets prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 3,810/t ($546/t) on 16 December, a sharp rise of RMB 104/t ($15/t) w-o-w.

Market highlights

• Indian market awaits billet tender outcome: State-owned Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The due date of the tender is 20 December and the delivery is scheduled for 5 February 2023. India’s billets exports dropped 66% y-o-y to 1 mnt in H1FY23.
• Iranian steel billet export prices head north: Iran’s billet export market remained active this week with prices increasing in a recently-concluded deal. An Iranian mill concluded an export deal for 30,000 t of steel billets at $465/t FOB, sources informed SteelMint. Another 30,000 t of export deal was concluded for GCC at $475/t FOB. Prices corrected upwards by $15/t as against the last concluded tender at the beginning of December.
• SE Asia’s imported billet offers surge: South-East Asia’s imported billet market remained largely inactive this week due to the gap between bids and offers. Imported billet offers were heard at $575-580/t CFR. However, bids did not improve as it stood at $565/t CFR. SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines stood at $571/t CFR Manila, an increase of $44/t, w-o-w.
• Vietnam’s billet export offers rise w-o-w: Vietnam’s BF-grade billet export offers increased by $25/t as against last week following a hike in the country’s imported scrap offers. Offers were at $545/t FOB. However, no active deals were heard at these offers.
• Thailand’s imported billet prices edge up: Imported billet offers stood at $550/t CFR, up by $17/t w-o-w. However, low buying prevailed in the market.
• China’s billet prices rise w-o-w: Steel billet prices in China’s Tangshan rose by RMB 90/t ($13/t) w-o-w. Prices stood at RMB 3,810/t ($546/t), including 13% VAT, on 16 December. The decline in inventories, a sharp hike in futures and finished steel prices supported billet prices.