Weekly round-up: Bearish sentiments weigh on global billet prices, except in Iran

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 countries, which resulted in limited deals.

Market highlights

• Iranian billet export prices rise in recent deals: Iran’s billet export market remained active this week with prices increasing in recently-concluded deals. Demand from the Gulf Cooperation Council (GCC) has lent support to billet export prices, SteelMint understands. An Iranian mill has concluded an export deal for 40,000 t of steel billets, sources informed SteelMint. The deal was concluded at $479/t FOB and the shipment is scheduled for December. In another deal, an Iranian mill sold 30,000 t of BF-route steel billets at $480/t FOB. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $480/t FOB on 21 October, up by around $15/t w-o-w.
• SE Asia’s imported billet market remains bearish: South-East Asia’s imported billet market remained largely inactive this week, with prices falling w-o-w due to low buying interest, SteelMint notes. SteelMint’s bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at around $530/t CFR Manila, down by around $5/t, w-o-w.
• Vietnam’s billet export offers fall $30/t w-o-w: Vietnam’s BF-grade billet export offers stood at around $490/t FOB, a w-o-w fall of around $30/t. Falling scrap prices on the back of low movement in the finished steel sector in the region have weighed on billet export offers, SteelMint understands.
• Thailand’s imported billet market silent: Thailand’s billet market witnessed low buying amid bid-offer disparities. Imported billet offers stood at around $550-555/t CFR, as per sources. However, bids are yet to improve.
• China’s billet prices fall w-o-w: Steel billet prices in China’s Tangshan decreased by RMB 40/t ($5/t) w-o-w. Prices stood at RMB 3,610/t ($498/t), including 13% VAT on 22 October. Weak market sentiments, drop in futures and finished steel prices have weighed on the domestic billet prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,630/t ($501/t) on 22 October, a sharp fall of RMB 129/t ($18/t) w-o-w.