Weekly round-up: Global billet market exhibits mixed trends

Global billet market showed mixed trends this week on weak finished steel sentiments, limited trading activity and cheaper Russian billet offers.

Market highlights-

• Indian primary mills inactive in billet exports: Indian primary steelmakers were inactive in the billet export market as they were eyeing the price levels of around $610-630/t FOB. However, there was a gap in bids and offers. The bids were heard in the range of $560-570/t, FOB. Meanwhile, a western India-based steelmaker recently concluded a deal of around 5,000 t of induction furnace (IF)-route billets for Africa. According to market sources, the deal was concluded at around $610-620/t on FOB basis.
• Iranian billet export prices fall to a 5-month low: Iranian billet export prices witnessed a sharp drop following a deal concluded at the beginning of this week. An Iranian mill concluded an export deal for 30,000 t of steel billets. The deal was concluded at around $560/t FOB for June 2022 shipment. Meanwhile, another billet and slab export tender of 40,000-50,000 t each was concluded at $560/t FOB and $570/t FOB, respectively. Bid-offer disparities and cheaper billet offers from Russia continued to drag down billet export prices to a five-month low. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $560/t FOB on 3 June, down $28/t w-o-w.
• SE Asian billet import market sluggish: South East Asia’s imported billet market remained less active due to the gap between bids and offers. The weakening of buy-side sentiments and cheap Russian billet offers kept bids on the lower side and hence held back trade. SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $648/tonne (t) CFR Manila, down $5/t w-o-w.
• Vietnam’s billet export offers down: Vietnam’s BF billet export offers stood at around $625/t FOB, a decrease of $10/t, w-o-w.
• China’s billet prices rise towards weekend: Steel billet prices in China’s Tangshan witnessed a rise of RMB 50/t ($7/t) w-o-w following a sharp hike in rebar futures ahead of the public holidays in China. Prices stood at RMB 4,500/t ($676/t), inclusive of 13% VAT, on 2 June. According to data maintained with SteelMint, the SHFE rebar futures contract for October 2022 delivery closed at RMB 4,788/t ($719/t) on 2 June, witnessing a sharp w-o-w rise of RMB 283/t ($42/t).