Weekly round-up: Bearish sentiments weigh on global billets market, but prices stay supported

Negative sentiments continued to prevail this week in the global billets 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.

However, hike in global ferrous scrap prices and the recovery in Shanghai Futures Exchange (SHFE) rebar futures before the National Holidays have supported prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,799/t ($534/t) on 30 September, a rise of RMB 33/t ($5/t) w-o-w.

Market highlights

• Iranian billet export market silent: Iran billets export market remained largely inactive this week, with no active deals for exports recorded by SteelMint so far. Low bids from the key importing nations, limited trades and competitive offers from Russia weighed on the export market, SteelMint notes. Moreover, economic activity in Iran is getting hampered due to the pending political negotiations involving the Joint Comprehensive Plan of Action (JCPOA), sources informed. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $460/t FOB on 30 September, stable w-o-w.
• SE Asia’s imported billet market remains bearish: South East Asia’s imported billets market remained silent on low buying interest amid subdued finished steel demand, bid-offer disparities and the region struggling with natural calamities, SteelMint observed. Meanwhile, the market has also slowed down as China will remain inactive next week owing to the National Holidays. SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $565/t CFR Manila, a rise of around $30/t, w-o-w. However, no active trade has been reported at current offers as buyers have adopted a wait-and-watch mode amid price-cut expectations.
• Vietnam’s billet export offers drop w-o-w: Vietnam’s BF-grade billet export offers stood at around $535/t FOB, a decrease of around $10/t FOB, w-o-w. Falling scrap prices and modest demand for finished steel in the region have weighed on billet export offers.
• Indian billet export market inactive: Indian mills are not active in exports as expectations are still above $600/t FOB due to higher domestic realisations.
• China’s billet prices edge up towards weekend: Steel billet prices in China’s Tangshan increased by RMB 30/t ($4/t) w-o-w before the National Holidays. Prices stood at RMB 3,680/t ($517/t), including 13% VAT on 30 September.
• China’s imported billet market inactive: China’s billet import prices continued their downward trend as weak demand still prevails in the market keeping trades at bay. SteelMint’s bi-weekly assessment for billet import prices currently stands at $488/t CFR, a marginal decrease of around $4/t w-o-w.