Weekly round-up: Global billet prices rise w-o-w amid higher offers

• Inactive Chinese futures market causes uncertainty
• Turkish scrap perks up from improved longs demand

Global billet prices rose this week due to higher offers, resulting in an absence of deals in the international market. Chinese market participants were inactive due to the National Day holidays in the first week of October. Traders noted that a wait-and-watch strategy is being adopted amid uncertainty stemming from the lack of activity in the Chinese futures market.

Turkish imported ferrous scrap prices rose significantly by $10/tonne (t) w-o-w, as steel producers are actively securing deep-sea scrap for November shipments at rising prices, driven by increasing steel and iron ore offers in China and improved demand in Turkiye’s longs markets. The uptick in prices is largely attributed to domestic long steel demand and a strengthening Chinese market, supported by recent government stimulus measures. BigMint’s assessment for US-origin HMS (80:20) bulk scrap stood at $378/t CFR, up $10/t w-o-w.

Market highlights

• SE Asia billet import prices increase: The Southeast Asian billet market remained quiet this week due to the absence of tenders. “Some trade sources are reporting that Chinese billet offers have risen to $500-510/t FOB. However, I am unsure about the authenticity of this information, as there is no active futures market. It seems difficult for anyone to buy or sell without that market in place,” noted a trader. BigMint’s bi-weekly assessment of billets (150 x 150 mm, 3SP) imported by the Philippines rose $40/t w-o-w to $505/t CFR Manila on 4 October. Billet import offers stood in the range of $500-510/t CFR Manila.
• Vietnam’s billet export offers rise: Vietnam’s blast furnace (BF) grade billet export offers rose $35/t w-o-w to $500/t FOB.
• Thailand’s billet import offers were recorded at $490-495/t CFR, up $5/t w-o-w.
• Indonesian billet offers were at around $480-485/t FOB.
• The Chinese billet market remained muted amid the ongoing Golden Week holidays (1-7 October). Market participants are exercising caution due to the absence of a futures market. Notably, billet prices in Tangshan were at RMB 3,050/t ($435/t) as of 27 September, inclusive of 13% VAT.
• Iran’s billet market witness tender conclusion: The Iranian billet market witnessed an export tender this week, and market participants are awaiting its conclusion for price clarity. Khouzestan Steel Company (KSC), a leading Iranian billet player, opened an export tender for 30,000 t of billets and slabs, BigMint learnt from its sources. The delivery is scheduled for December 2024. Additionally, Khorasan Steel Complex have concluded an billet export tender of 25,000 t at around $453-454/t FOB Iran, sources informed BigMint.