Weekly round-up: Billet prices firm up on rising global scrap prices, rebar futures

The global billet market saw dull buying interest resulting in limited deals this week. However, recovery in global scrap prices with the rise in Turkiye’s imported scrap prices by around $11/tonne (t) w-o-w, was supportive for billet prices.

A hike in rebar futures also supported prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,314/t ($625/t) on 10 March, an increase of RMB 42/t ($6/t), w-o-w.

Market highlights

• Indian mills active in export market: State-owned Vizag Steel floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission for both tenders is 14 March and delivery is scheduled for 30 April. SteelMint’s assessment of India’s billet (150*150 mm, 3SP/4SP) export prices stood at $602/t FOB on 10 March, an increase of $9/t w-o-w.
• Iran’s billet export prices rise: An Iranian steel mill concluded an export deal for 50,000 t of billets at around $574/t FOB. Prices have inched up by $2/t against the last deal recorded at the beginning of this week. Lesser number of firm export offers, power curbs, and rising global ferrous scrap prices kept billet prices supported. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at $570-572/t FOB on 10 March, an increase of $5/t w-o-w.
• SE Asia’s imported billet prices stay supported: South East Asia’s imported billet prices remained supported this week. However, low buying interest amid subdued finished steel demand in the region and bid-offer disparity weighed on deals. On the other hand, market participants opined that due to a sharp recovery in global ferrous scrap prices, billet offers too may rise in the near term. SteelMint’s bi-weekly assessment of BF-route billet (150*150mm, 3SP) imported by the Philippines currently stands at $629/t CFR Manila, an increase of around $4/t w-o-w.
• Vietnam’s billet export offers unchanged: Vietnam’s BF-grade billet export offers remained stable at around $630-640/t FOB this week. Limited buying interest amid mixed sentiments in the finished steel market in the region weighed on the export market.
• Chinese billet prices rise to over 8-month high: Billet prices in China’s Tangshan rose by RMB 70/t ($10/t) to RMB 4,030/t ($583/t), including 13% VAT, on 10 March. Prices rose to over 8-month high. Improved demand, hikes in futures and firm finished steel prices kept billet prices supported.