- Fresh billet export tender limited in global market
- Ongoing holidays in Iran, China impact billet market
Global billet prices continued to downtrend this week also. Whereas, billet players are opting wait-and-watch mode currently, due to lack of buying interest in the global market. Notably, in China, weak sentiment amid ongoing Qingming festival holidays from 4-6 April. Meanwhile, Iranian New year holidays are also taking place till 13 April. Moreover, high interest and inflation rates in Turkiye, limited construction activity and the steel trade, weighing on billet demand. These factors discouraging mills for material purchases.
According to BigMint, HMS 1 and 2 (80:20) prices from the US stood at $384/tonne (t) CFR on 5 April,2024, inched down by $6/t w-o-w, driven by efforts from mills to push prices down. Turkish buyers booked around 25-27 deep sea bulk vessels for late March-April and also for early-mid May shipments from Europe, the US, and the Baltic regions. This could put an upward pressure on prices if demand unexpectedly surges. Continued monitoring of supply chain developments is crucial.
Market highlights
- SE Asia billet import prices drop sharply: The Southeast Asian imported billet prices indicated downtrend this week. In the global market, absence of billet tender was recorded, keeping prices at lower levels. As per sources, billet import offers were recorded at $500/t CFR , down by $14/t w-o-w and bids are at around $490/t CFR, fall by $13/t w-o-w. According to BigMint’s bi-weekly assessment, billet import prices went down by $15/t w-o-w to $495/t CFR Manila on 5 April.
- Iranian billet export prices remain stable w-o-w: Iranian billet export prices remained stable w-o-w at $485/t FOB, according to BigMint’s assessment. Subdued sentiment in billet export market was noted amid ongoing Iranian New Year holidays.
- Thailand’s imported billet offers drop w-o-w: Thailand’s imported billet offers dropped by $15/t w-o-w to around $500-510/t CFR Thailand.
- Vietnam’s billet export offers remain still w-o-w: Vietnam’s billet export offers remained unchanged at the range of $505-510/t FOB this week.
- Chinese billet prices drop w-o-w: Notably, prior to Qingming festival holidays, in the previous week, Chinese billet prices dropped by RMB 40/t ($5/t) w-o-w to RMB 3,300/t ($456/t) on 3 April against 27 March. Sluggish demand of raw materials, drop in steel production and rebar futures have weighed on billet prices. Meanwhile, Chinese SHFE rebar futures recorded a fall by RMB 16/t ($2/t) w-o-w to RMB 3,463/t ($479/t) on 3 April as against 27 March.
