Weekly round-up: Rising global scrap prices, rebars futures keep billets offers supported

The global billets market saw dull buying interest resulting in limited deals this week. However, global scrap price recovery, with the rise in Turkiye’s imported scrap prices by around $27/tonne (t) w-o-w has been supportive for billets prices.

Hike in rebars futures has also supported prices. According to data maintained with SteelMint, China’s SHFE rebars futures contract for May 2023 delivery closed at RMB 4,224/t ($607/t) on 24 February, an increase of RMB 57/t ($8/t) w-o-w.

Market highlights

• Indian mills continue to eye higher billets prices: Indian mills’ expectations for recent billets export tenders are at around $580-585/t FOB. Meanwhile, State-owned Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The due date of the tender was 22 February, 2023. According to sources, the steel mill managed to receive bids at around $575-580/t FOB. Moreover, one induction furnace (IF) grade deal of 1,000-2,000 t was heard at around $575/t FOB.
• Iranian billets export market less active: Iran’s steel billets export market witnessed limited trading this week amid news of the Iranian government introducing new policies due to expected inflation in the country and the increasing trend of the exchange rate. As a result, an upward swing in the exchange rate led the domestic market to become the “first preference” for billets exporters to sell their material, sources informed. The lesser firm offers currently in the export market and power curbs due to harsh winter in the region also weighed on trade activities. However, an Iranian steel mill has concluded an export deal for 30,000 t of billets at around $554/t FOB for March, 2023 shipment. Prices have corrected downwards by $6/t against the last deal. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at around $558/t FOB on 24 February, unchanged w-o-w.
• SE Asia’s imported billets market remains sluggish: South East Asia’s imported billets market remained silent on low buying interest amid subdued finished steel demand in the region and bid-offer disparities, SteelMint noted. Offers are prevailing at around $625-630/t CFR Manila. Some ASEAN-origin offers were also heard at a higher level of $660/t CFR. However, bids are yet to improve as buyers are willing to procure at around $620/t CFR Manila. SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $624/t CFR Manila, a significant increase of around $24/t w-o-w.
• Vietnam’s billets export offers unchanged w-o-w: Vietnam’s BF-grade billets export offers remained stable at $630/t FOB this week. Prolonged inflation and high-interest rates put pressure on the real estate industry. Demand for finished products in the construction industry is slow which has weighed on billets prices.
• Thailand’s imported billets prices stable: Imported billets prices in the country remained stable for the second consecutive week at around $620-640/t CFR.
• China’s domestic billets prices rise w-o-w: Steel billets prices in China’s Tangshan increased by RMB 80/t ($11/t) to RMB 3,930/t ($565/t), including 13% VAT, on 24 February. Improved demand, hikes in futures, and finished steel prices have supported billets prices, SteelMint noted.