Weekly round-up: Global billet market remains weak amid limited trading

The global billet market witnessed dull sentiments throughout the week amid the absence of firm buying interest, which resulted in limited deals.

However, the recovery in SHFE rebar futures supported prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,637/t ($512/t) on 12 November, a rise of RMB 75/t ($10/t) w-o-w.

Meanwhile, with Chinese billet export offers being withdrawn, global billet prices are expected to find some support. However, subdued finished steel demand may continue to weigh on offers.

Market highlights

• Iranian billet export prices remain under pressure: Iranian steel billet export prices witnessed a downward trend this week in recently-concluded deals. Falling global scrap prices, weak demand, drop in bids from key importing countries and return of Chinese billets into the market have weighed on billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 30,000 t of steel billets at around $464/t FOB. Prices have corrected downward by around $6/t as against the last concluded tender the previous week. Meanwhile, another billet export tender failed to receive active participation, sources informed SteelMint. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $465/t FOB on 11 November, stable, w-o-w.
• SE Asia’s imported billet prices stay supported: South East Asia’s imported billet prices remained supported this week. However, sluggish finished steel sentiments in the region and weak demand kept trades at bay even after billet export offers were heard withdrawn by Chinese mills today following a significant rise in SHFE rebar futures. SteelMint’s bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at around $500/tonne (t) CFR Manila, up marginally by around $9/t, w-o-w.
• Vietnam’s billet export offers fall w-o-w: Vietnam’s BF-grade billet export offers fell by around $20/t w-o-w. Current offers stand at around $465/t FOB. However, no active deals have been reported so far at reduced offers.
• Thailand’s imported billet prices edge down: Thailand’s billet market witnessed low buying amid bid-offer disparities. Imported billet offers from China stood at around $505/t CFR, down by around $5/t w-o-w, as per sources.
• China’s billet prices edge up on improved market sentiments: Steel billet prices in China’s Tangshan increased by RMB 20/t ($3/t) w-o-w. Prices stood at RMB 3,500/t ($492/t), including 13% VAT on 12 November. Improved buying interest followed by hikes in futures and finished steel prices has supported domestic billet prices, SteelMint notes.