- Iranian billet prices rise on higher port costs
- Black Sea logistics continue limiting Russian billet exports
Global billet markets continued to firm in the week ended 5 September, supported by higher raw-material costs, stronger seller expectations and improved regional buying interest across Asia, the CIS and the Middle East. However, cautious purchasing, limited transactions and ongoing logistics disruptions continued to restrict market activity, while tight billet availability provided additional support in the Middle East.
In Turkiye, US-origin HMS 80:20 was indicated above 382-385/t CFR, with market activity concentrated around $378-380/t CFR. Firmer rebar prices and improved mill margins supported scrap values, with export rebar assessed at $595-600/t FOB and offers at $605-610/t FOB. The scrap-to-rebar spread stood at $212-215/t, allowing mills some room to absorb higher scrap costs.
Scrap suppliers remained firm amid limited availability, higher collection costs, and elevated freight, while scarce competitively priced alternatives provided further support. Further scrap gains will depend on October restocking and fresh Turkish mill demand. Meanwhile, 3SP billet export prices stood at $530/t FOB Turkiye, down $4/t.
Asian billet market
Asian billet export prices continued to strengthen this week, supported by higher iron ore, coking coal, and coke costs. However, buying remained cautious as consumers resisted the higher offer levels.
Chinese billet prices rose to RMB 3,040/t ($453/t) from RMB 3,000/t ($446/t), gaining RMB 40/t ($7/t) w-o-w. SHFE October rebar futures increased to RMB 3,106/t ($463/t) from RMB 3,088/t ($459/t). Despite lower social inventories, steel demand remained subdued.
Chinese mills raised 3sp billet offers to $466-475/t FOB for October-November shipment, compared with $458-460/t FOB previously. Workable levels were indicated around $460-462/t FOB. An Asian trader said firm coke and coking-coal prices were supporting offers and expected the market to remain firm through September.
Indonesian major mills offered base-grade billet at $478-480/t FOB for the November shipment, up $2-3/t w-o-w. Some volumes were reportedly taken at this level by traders for longer positions.
In Taiwan, Chinese 3sp billet prices increased $10/t w-o-w to $490-495/t CFR, against bids of $482-485/t CFR. An unconfirmed 12,000-15,000-t Russian-origin base-grade billet trade was reported at $485-486/t CFR Taiwan.
In Southeast Asia, 5SP billets were offered at $505-510/t CFR, while counteroffers remained below $490-494/t CFR. Chinese 5sp billet offers in the Philippines increased to $500-505/t CFR Manila, from $490-495/t previously, but buying interest remained limited.
BigMint’s billet export assessment from China stood at $466/t FOB, up $6/t w-o-w from $460/t, after reaching $472/t earlier in the week. Export activity remained stable amid mixed overseas demand.
Logistical constraints continued to affect shipments into the Middle East. Market sources reported around 50,000 t of Chinese billet sold into Oman at approximately $505/t CFR, although the transaction remained unconfirmed.
Middle East billet market
The Middle East billet market remained tight as prolonged logistics disruptions and limited imports made feedstock increasingly difficult for re-rollers to secure. The UAE was particularly affected because of its dependence on imported billet, while shortages were also reported in western Saudi Arabia and Bahrain.
UAE billet availability was assessed at around $648-650/t DAP, compared with $655-660/t during last week. Participants said supply constraints, rather than stronger downstream demand, were driving market conditions, while transactions remained limited.
Negotiable GCC billet levels were reported at $640-650/t CPT Jebel Ali, increasing by $8-10/t w-o-w. The Asian billet was indicated at $500-510/t CFR Jebel Ali, translating to around $580-620/t CPT after freight, discharge, and inland costs. No transactions were reported at these levels.
Buyers remained cautious, as freight, demurrage, and geopolitical risks could reduce the cost advantage of imported material.
In Iran, the gap between border and port-based billet prices widened. Border offers remained at $405-410/t FCA, while port offers increased to $425-435/t FOB. Higher port-service costs, which reportedly nearly doubled, supported the increase, although buyers resisted the higher levels.
Iranian rebar export offers were heard at $440-450/t exw/FOB. Security concerns around the Strait of Hormuz and continued sanctions added uncertainty to export flows and payment arrangements.
CIS billet market
CIS billet sellers raised price indications over the past week, supported by higher Turkish billet, scrap, and long-steel prices. However, the absence of viable shipping options from Black Sea ports kept most offers nominal and limited actual trade.
Russian billet offers increased to $468-470/t FOB Black Sea, from $462-465/t FOB a week earlier. Several suppliers also shifted to $515-525/t CFR Turkiye, equivalent to around $465-470/t FOB, as sellers sought greater flexibility over loading ports.
A market participant said higher offers were supported by new billet levels from Kardemir, firmer Chinese offers and stronger Turkish scrap and long-steel prices.
However, transportation remained the main constraint. Russian Black Sea cargoes were effectively unavailable for Turkish buyers, while alternative ports and rail routes were being prioritised for agricultural shipments. As a result, no confirmed export transactions were reported.
CIS customers had previously assessed the billet at around $500-505/t CFR Turkiye, equivalent to approximately $460-470/t FOB. Given the higher seller indications but lack of confirmed transactions, the Black Sea export billet assessment increased by $1-2/t to $468/t FOB.
Meanwhile, Turkish long-steel producer Ekinciler reported strong billet shipments in August, with the company shipping $25 million worth of semi-finished billet, its highest monthly shipment value in recent years. Cumulative billet shipment value reached $117 million in 2026, although the company did not disclose shipment volumes.
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