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 3,766/t ($528/t) on 23 September, a rise of RMB 80/t ($11/t) w-o-w.

Market highlights

• Iranian billet export market sees muted trading: Iran’s billet export market remained silent this week with prices witnessing a marginal fall w-o-w. No deals for exports were recorded by SteelMint so far. Moreover, economic activities in Iran are 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 23 September, stable w-o-w.
• SE Asia’s imported billet prices fall w-o-w: Southeast Asia’s imported billet prices saw a fall this week amid lower bids, limited trade and weakened finished steel sentiments in the region. SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $535/t CFR Manila, a decrease of around $18/t w-o-w. As per sources, Manila-based steelmakers have booked around 10,000 t of billet (130mm 3sp) at $535 CFR recently this week.
• Vietnam’s billet export offers rangebound: Vietnam’s BF-grade billet export offers stood at around $540-550/t FOB, remaining range-bound w-o-w. However, no active deals have been reported so far at current offers.
• China’s billet prices edge down towards weekend: Steel billet prices in China’s Tangshan fell marginally by RMB 10/t ($1/t) w-o-w. Prices stood at RMB 3,650/t ($512/t), including 13% VAT on 23 September.
• China’s imported billet market inactive: China’s billet import prices continued its 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 $490/t CFR, a marginal decrease of around $6/t w-o-w.