- Iranian billet export prices rise on currency devaluation, gas shortage
- Chinese billet prices head north ahead of Lunar holidays
The global billet market showed positive sentiment this week. Billet players were active in the global market as improved export trades have been recorded except in Southeast Asia, BigMint noted.
Whereas, Turkiye’s imported scrap prices have decreased this week on low trade activities and uncertainty on price direction. According to BigMint, HMS 1&2 (80:20) prices from the US stood at $420/tonnes (t) CFR on 27 January, inched down by $2/t w-o-w.
Market highlights:
- Iranian billet export prices inch up in recent trade: Iran’s billet export prices have strengthened amid ongoing gas shortage in the domestic market and recently Iranian currency devalued by 10%, raising demand of raw material. An Iranian mill has concluded an export tender for 35,000 t of billets. The deal was concluded at around $490-495/t FOB. Prices increased by around $5-10/t w-o-w. BigMint’s latest assessment indicates that Iran’s billet (3SP) export prices were slightly up this week to stand at around $490-495/t FOB on 25 January, 2024.
- SE Asia billet import offers drop w-o-w: The imported billet offers in Southeast Asia declined this week, as billet importers from the global market have opted wait-and-watch mode due to weak sentiment of finished products. The offers for the 5 SP grade imported billet were reduced by $5/t to stand at $545-555/t CFR Manila w-o-w. However, the bids for 5 SP remained stable w-o-w, standing at around $540/t CFR on 25 January.
- Vietnam’s export offers show positive sentiment: Vietnam’s BF-grade billet export offers stood at $550/t FOB. In the domestic market, the trades of around 50,000 t have been concluded at $540/t exw levels.
- Thailand’s imported billet offers remain unchanged: Imported billet offers from the ASEAN region into Thailand remained unchanged at $550/t CFR Thailand.
- Indonesian steelmaker Dexin Steel is offering $530/t FOB, as per sources, they have booked 50,000 t of billet at $528/t FOB this week.
- Chinese billet prices rise w-o-w: Chinese billet prices inched up by RMB 80/t ($11/t) w-o-w to RMB 3,650/t ($515/t) on 25 January. Hike in finished steel prices and rebar futures have supported billet prices. Billet players are actively restocking the materials amid upcoming Lunar holidays. Meanwhile, Chinese SHFE rebar futures increased by RMB 54/t (8/t) w-o-w to RMB 3,967/t ($560/t) today.
