Weekly round-up: Global billet market remains weak ahead of holidays

The global billet market witnessed dull sentiments this week amid the absence of firm buying interest, which resulted in limited deals ahead of the Christmas and New Year holidays.

Also, the market slowed down as the current situation in China is uncertain due to reports of a rise in Covid cases.

Market highlights-

• Iranian billet export prices rise: Iranian steel billet export prices continued to head north in a recently-concluded deal. A recovery in global scrap prices kept billet export prices supported. An Iranian mill concluded an export deal last week for 30,000 t of steel billets for shipment to the Gulf Cooperation Council (GCC) region at around $475/t FOB. Prices corrected upwards by around $10/t as against the last concluded tender at the beginning of the previous week. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $470/t FOB on 23 December, up marginally by around $2/t, w-o-w.
• SE Asia’s imported billet prices range-bound: South East Asia’s imported billet market continued to remain silent on low buying interest and sluggish finished steel demand in the region. SteelMint’s bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines stood at around $566/tonne (t) CFR Manila, a marginal fall of around $5/t, w-o-w.
• Vietnam’s billet export offers up w-o-w: Vietnam’s BF-grade billet export offers increased by around $5/t as against last week. Offers were at around $550/t FOB. However, no active deals were reported at these prices.
• Thailand’s imported billet prices edge up: Imported billet offers stood at around $560/t CFR, up by around $10/t w-o-w. However, low buying was seen in the market.
• China’s billet prices fall w-o-w: Steel billet prices in China’s Tangshan fell by RMB 80/t ($11/t) w-o-w. Prices stood at RMB 3,730/t ($534/t), including 13% VAT, on 24 December. Weak demand, a sharp fall in futures, and finished steel prices pulled down billet prices. China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,049/t ($579/t) on 23 December, a decrease of RMB 44/t ($6/t) w-o-w.