Weekly round-up: Global billet prices stay supported even amidst limited deals

Global billet prices remained supported this week. However, absence of firm buying interest and weakened finished steel sentiments resulted in limited deals.

Market highlights

• Iranian billet export market rangebound in recent deal: Iran’s billet export market remained largely silent this week with prices remaining rangebound in a recently-concluded deal. Hike in Chinese steel prices and the energy crisis in the European Union (EU), along with Turkey, supported billet export prices. An Iranian mill concluded an export deal for 40,000 t of steel billets at around $460/t FOB for October shipment, sources informed SteelMint. Prices have remained rangebound as against the last concluded tender in the previous week. Another 20,000-30,000 t slab export tender was concluded by a leading steel mill at around $430/t FOB Iran and the shipment is scheduled for end-October. Meanwhile, Chadormalu and Sirjan Steel Company have floated steel billet export tenders of 30,000 t each. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $461/t FOB on 16 September, stable, w-o-w.
• SE Asia’s imported billet market silent: South East Asia’s imported billet prices remained supported this week. However, lower bids and weakened finished steel sentiments in the region kept trades at bay. SteelMint’s bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $553/tonne (t) CFR Manila, a marginal increase of around $5/t, w-o-w.
• Vietnam’s billet export offers rangebound: Vietnam’s BF-grade billet export offers stood at around $530-540/t FOB, remaining rangebound w-o-w. Meanwhile, some industry participants found domestic prices more attractive, which stood at around $550/t exw.
• China’s billet prices fall towards weekend: Steel billet prices in China’s Tangshan fell by RMB 60/t ($8/t) w-o-w. Prices stood at RMB 3,660/t ($524/t), including 13% VAT on 16 September. Volatility in rebar futures and drop in finished steel prices owing to weak demand have pulled down prices. According to data maintained with SteelMint, China’s SHFE rebar futures contract for January 2023 delivery closed at RMB 3,686/t ($528/t) on 16 September, a drop of RMB 105/t ($15/t) w-o-w.
• China’s imported billet market inactive: SteelMint’s bi-weekly assessment for billet import prices currently stands at $495/t CFR, a marginal decrease of around $2/t w-o-w. However, weak demand still prevails in the market as no significant trade was reported at current offers, SteelMint notes.