The global billet market saw dull buying interest resulting in limited deals last week. However, global scrap price recovery, with Turkiye’s imported scrap prices moving up by around $11/t w-o-w, has been supportive for billet prices.
Market highlights
- Indian billet export market sluggish on bid-offer disparities: The Indian billet export market remained sluggish amid bid-offer disparities. According to sources, the primary mills are expecting a price level of $560-580/t FOB in recently-floated tenders. However, bids received were in the range of $535-540/t FOB.
- Iranian billet export prices rise in recent deal: An Iranian mill concluded an export deal for 30,000 t of steel billets at around $531/t FOB, sources informed. Prices have increased by $30/t as against levels seen earlier this week. The recovery in global scrap prices, and limited export allocations amidst power curbs, have kept billet export prices supported. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at $531/t FOB on 13 January, an increase of INR $31/t w-o-w.
- SE Asia’s imported billet offers rise w-o-w: Imported billet prices in South East Asia edged marginally higher this week, although demand still remains low. Meanwhile, scarce supply of Iranian semis is also pushing up import offers in the region. However, trades are yet to pick up as sluggish finished steel demand still prevails in the SE Asian markets. SteelMint’s bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $576/t CFR Manila, up by around $8/t w-o-w.
- Vietnam’s sellers hold back export offers: Vietnam’s BF-grade billet export market has been mostly quiet this week as mills are largely sold out for March shipments. Steel market sentiments are subdued ahead of the Tet and Lunar New Year holidays, which will last nine days starting 20 January. Vietnamese steelmakers are likely to remain out of the market this month and may resume activities only after the holidays.
- Thailand’s imported billet market quiet: Imported billet prices in the country are hovering at $580/t CFR. However, no active deals have been reported so far on current offers.
- China’s domestic billet prices rise w-o-w: Steel billet prices in China’s Tangshan rose sharply by $70/t w-o-w to RMB 3,850/t ($574/t), including 13% VAT, on 13 January. A hike in futures and finished steel prices over the week have supported billet prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,173/t ($622/t) on 13 January, an increase of RMB 66/t ($10/t) w-o-w.
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