Weekly round-up: Global billet prices stay supported amid positive market sentiments

Global billet prices remained supported this week followed by a recovery in global scrap prices with the rise in Turkiye’s imported scrap prices by around $20/t w-o-w and limited offers by steel mills. However, trades are yet to improve.

A hike in rebar futures also kept prices supported. According to SteelMint data, China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,272/t ($618/t) on 3 March, an increase of RMB 48/t ($7/t), w-o-w.

Market highlights

• Indian mills continue to eye higher billet prices: Indian mills’ price expectations for billet exports are at over $600/t FOB. However, active trade has not been reported as buyers are resisting procuring at prevailing prices.
• Iran’s billet export prices rise in recent deal: An Iranian steel mill has concluded an export deal for 50,000 t of steel billets at around $571-573/t FOB. Prices inched up by around $16/t against the last deal. Lesser number of firm offers currently in the export market and power curbs due to the harsh winter in the region have supported billet prices, SteelMint notes. Meanwhile, Esfahan Steel Company (ESCO) has floated an export tender for 30,000 t of steel billets. The shipment is for April.
• SE Asia’s imported billet prices stay supported: South East Asia’s imported billet prices remained supported this week. However, low buying interest amid subdued finished steel demand in the region, along with bid-offer disparities, kept trades muted. SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $625/t CFR Manila, an increase of around $10/t w-o-w.
• Vietnam’s billet export offers range-bound: Vietnam’s BF-grade billet export offers remained range-bound at around $630-640/t FOB this week. The hike in the country’s scrap prices has supported billet prices. However, no active deal was reported at current offers.
• Thailand’s import billet prices largely stable: Imported billet prices in the country remained largely stable this week at around $630-640/t CFR.
• China’s domestic billet prices rise w-o-w: Steel billet prices in China’s Tangshan rose by RMB 30/t ($4/t) to RMB 3,960/t ($573/t), including 13% VAT, on 3 March, 2023. Hike in futures and finished steel prices have kept billet prices supported. China’s SHFE rebar futures contract for May delivery closed at RMB 4,272/t ($618/t) on 3 March, an increase of RMB 48/t ($7/t), w-o-w.