Weekly round-up: Bearish sentiments weigh on global billet market

Negative sentiments continued to prevail this week in the global billet market due to factors such as bid-offer disparities, absence of firm buying interest and drop in bids from key importing nations resulting in limited deals.

Market highlights

• Indian billet export market inactive: Indian BF-grade billet export trade continued to remain inactive as buyers kept at bay. Steel mills in India are not ready to sell at lower rates as they are getting a better realisation in the domestic market. State-owned Vizag Steel floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST. delivery basis against an irrevocable letter without recourse to drawer international letter of credit payable at sight terms. The due date for the tender is 2 August and the delivery is scheduled for 10 September.
• Iranian billet export prices fall: Iranian steel billet export prices continued to head south this week in recently-concluded deals. Declining global scrap prices, low bids and limited trade have pulled billet export prices down, SteelMint notes. An Iranian mill concluded an export deal for 40,000 t of steel billets at around $475/t FOB, sources informed SteelMint. The shipment is likely to be scheduled for September. Prices have corrected downward by around $25/t as against last week. Last week, another deal for around 30,000 t BF billets was concluded at $490/t FOB. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stands at $475/t FOB on 26 July, down $25/t w-o-w.
• SE Asian billet import market sluggish: South East Asia’s imported billet market sentiments continued to weaken on low demand. The weakness stems from the subdued finished steel market in the region and falling global scrap prices, SteelMint understands. SteelMint’s bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $517/tonne (t) CFR Manila, stable, w-o-w. However, bids continue to remain on the lower side and were heard at around $505/t CFR levels.
• Vietnam’s billet export offers edge down w-o-w: Vietnam’s BF-grade billet export offers stood at around $495/t FOB, a w-o-w decrease of $5/t due to weak demand in the domestic market.
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country are hovering around $520/t CFR, down $15/t w-o-w. Weak demand and falling finished longs prices in the region due to the onset of monsoon continue to weigh on billet import prices.
• China’s billet prices rise towards weekend: Steel billet prices in China’s Tangshan witnessed a rise of RMB 80/t ($12/t) w-o-w to reach RMB 3,630/t ($538/t), including 13% VAT, on 29 July. Spot prices recovered following a sharp increase in rebar futures due to an economic rebound in the country with few mills resuming operations. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 3,996/t ($592/t) on 29 July, witnessing a sharp hike of RMB 133/t ($20/t) w-o-w.