Weekly round-up: Global billet prices edge up post New Year holidays

Global billet prices increased after the New Year holidays followed by a hike in global scrap offers. However, the absence of firm buying interest still prevailed in the market. Notably, imported scrap prices in Turkey rose by $30-35/t w-o-w.

Also, sluggish finished steel demand and the slow Chinese market weighed on the global billet market, SteelMint notes.

Market highlights

• Indian mills eye higher billet prices: A few Indian mills have become active in the export market. As per market sources, Indian mills’ expectations for recent billet export tenders are at around $530-550/t FOB.
• Iranian billet export market less active: Iran’s billet export market remained less active this week amidst news of gas restrictions imposed on a few mills. No firm deals for exports have been recorded so far amidst limited offers. However, the hike in scrap offers kept prices supported. The latest assessment of Iran’s billet (3SP) export prices stood at around $500/t FOB on 6 January, up by around $25/t w-o-w.
• SE Asia’s imported billet market silent: South East Asia’s imported billet market continued to remain quiet on low buying interest post-New Year as market participants are yet to return from holidays. However, prices for imported billet remained supported this week. SteelMint’s bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $570/t CFR Manila, up marginally by around $4/t w-o-w.
• Vietnam’s billet export offers inch up w-o-w: Vietnam’s BF-grade billet export offers increased marginally by around $5/t as against last week followed by a hike in the country’s scrap offers. Current offers are at around $565/t FOB. However, no active deals have been reported so far on current offers.
• China’s domestic billet prices stable w-o-w: Steel billet prices in China’s Tangshan remained stable w-o-w. Prices stood at RMB 3,780/t ($553/t), including 13% VAT, on 6 January. According to data maintained with SteelMint, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,107/t ($600/t) on 6 January, largely stable w-o-w.