Global billets prices remained supported this week followed by a hike in global scrap offers ahead of the New Year holidays. However, the absence of firm buying interest still prevailed in the market.
Market highlights-
- Iranian billets export prices unchanged in recent deal: Iran’s billets export market remained largely quiet this week. Meanwhile, an Iranian mill concluded an export deal for 30,000 t of steel billets for GCC at $480/t FOB. However, the majority of mills quoted export offers of $485-490/t, FOB Iran citing a sharp hike in domestic prices. Prices remained supported amid a hike in scrap offers, SteelMint observed. However, a reduction in gas supplies during the harsh winters in the region may result in a decline in production levels as steel mills are mandated to reduce consumption by 30% which is likely to put steel mills under pressure and, in turn, affect billets export allocations.
- SE Asia’s billets import market passive: South East Asia’s imported billets market continued to remain silent on low buying interest and sluggish finished steel demand in the region. SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines stood at $566/t CFR Manila, stable w-o-w.
- Vietnam’s billets export offers up w-o-w: Vietnam’s BF-grade billets export offers increased by $10/t w-o-w followed by a hike in the country’s scrap prices. Offers were at $560/t FOB. However, no active deals were reported this week.
- China’s domestic billets prices rise sharply w-o-w: Steel billets prices in China’s Tangshan rose by RMB 50/t ($7/t) w-o-w. Prices stood at RMB 3,780/t ($548/t), including 13% VAT, on 30 December. A hike in futures and finished steel prices supported billets prices. China’s SHFE rebar futures contract for May 2023 delivery closed at RMB 4,105/t ($595/t) on 30 December, a sharp increase of RMB 100/t ($14/t) w-o-w.
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