Weekly round-up: Global billet prices stay supported amid hike in Chinese rebar futures

Global billet prices remained supported this week following an uptick in rebar futures. However, trades are yet to improve.

According to data maintained with SteelMint, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,167/t ($607/t) on 17 February, a sharp increase of RMB 93/t ($13/t), w-o-w.

Market highlights

• Indian mills continue to eye higher billet prices: Indian mills have become active in the export market. As per sources, mills’ expectations for recent billet export tenders are at around $600-610/t FOB. 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 22 February and the delivery is scheduled for 15 April.
• Iranian billet export prices rise w-o-w: Iran’s billet export market witnessed limited trading with prices rising w-o-w. Lesser number of firm offers and harsh winter conditions in the region hampered trade activities. Meanwhile, an Iranian steel mill has concluded an export deal for 20,000 t of steel billets at $560/t FOB for early-April shipment towards the end of last week. However, limited export allocations amidst power curbs kept billet export prices supported. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $558/t FOB on 17 February, an increase of around $15/t w-o-w.
• SE Asia’s imported billet prices remain supported: South East Asia’s imported billet market remained silent this week with no active deals heard. However, prices remained supported following a sharp hike in Chinese rebar futures. SteelMint’s bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $600/t CFR Manila, an increase of $3/t w-o-w.
• Vietnam’s billet export offers unchanged: Vietnam’s BF-grade billet export offers remained stable at $630/t FOB this week as the upward trend in finished steel demand post-Tet holidays was not high.
• Thailand’s imported billet prices stable: Imported billet prices in the country remained stable for the second consecutive week at around $620-640/t CFR.
• China’s domestic billet prices rise w-o-w: Steel billet prices in China’s Tangshan rose by RMB 60/t ($9/t) to RMB 3,850/t ($561/t), including 13% VAT, on 17 February. A hike in futures throughout the week has supported billet prices, SteelMint notes.