The global billet market exhibited a mixed trend this week. The Southeast Asia region saw lower billet offers. Meanwhile, a few active billet export tenders were floated in the Middle East and the Indian Ocean. Also, a slight recovery in China’s billet prices was observed, influenced by a positive outlook in the futures market.
Notably, Turkish imported ferrous scrap for US-origin HMS (80:20) sharply dropped by $11/tonne (t) w-o-w, recorded at $360/t CFR on 23 August, according to BigMint’s assessment. The Turkish ferrous scrap market experienced a challenging week, with prices steadily declining to nearly 10-month lows. Early in the week, scrap prices held steady as recyclers resisted lowering their offers, despite weak demand from mills.
Market highlights
- SE Asia import billet prices drop w-o-w: Imported billet prices in Southeast Asia recorded a significant drop this week owing to lower offers in the region. BigMint’s bi-weekly assessment reported that billets (150x150mm, 3SP) imported by the Philippines were priced at a range of $460-465/t CFR Manila, a sharp drop of around $17/t CFR w-o-w. Notably, offers are ranging at around $460-465/t CFR.
- Vietnam’s billet export offers remain stable w-o-w: Vietnam’s blast furnace (BF)-grade billet export offers remained stable w-o-w at $465/t FOB. However, an absence of billet tender was witnessed this week.
- Iranian billet market witnesses an active export tender: An Iranian steel mill has floated an export tender for 30,000 t of billets (150x150mm). The shipment is scheduled for end-September 2024. According to BigMint’s assessment Iran’s billet (3SP) export prices are in the range of $465/t FOB, recording a drop of $7/t FOB w-o-w on 23 August.
- Indian billet export market awaits tender outcome: Indian billet export market is waiting for billet tender conclusion for price clarity. State-owned Vizag Steel (RINL) has floated two ocean sale export tenders – a 30,000 t blooms (150×150 mm, 3SP/4SP) and 20,000 t billets (90×90 mm, C20MMn Gr. A) on FOB ST. delivery basis. The due dates for bloom and billet tenders are 23 August and 27 August, 2024, respectively, with delivery scheduled for 7 October and 10 October, 2024.
- Chinese billet prices edge up w-o-w: Billet prices in Tangshan edged up by RMB 40/t ($6/t) w-o-w to RMB 2,900/t ($406/t) on 23 August. Volatility in raw material, finished steel prices and rebar futures kept supporting billet prices this week. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) rose by RMB 76/t ($11/t) w-o-w to RMB 3,154/t ($442/t) on 23 August, 2024.
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