SE Asia: Imported billet prices drop w-o-w amid subdued market sentiments
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Southeast Asia's imported billet prices dropped this week. As per sources, continued weakness in the Chinese market, particularly in rebar futures which have seen a significant drop, have put pressure on billet prices. Additionally, buyers have reduced interest as they anticipate further price declines.
According to BigMint's bi-weekly assessment, billets (150x150mm, 3SP) imported by the Philippines were assessed at $480/tonne (t) CFR Manila, down by $5/t w-o-w. Notably, previous billet (150x150mm, 5SP) offers were lower at $475-485/t CFR Manila. However, not many transactions were reported this week.
Market highlights
- Vietnam's billet export offers stable w-o-w: Vietnam's blast furnace (BF)-grade billet export offers remained stable w-o-w at $470/t FOB. However, there was a lack of billet tenders this week.
- Iranian billet prices remain constant w-o-w: Iranian billet export prices remained stable this week. The market witnessed an active export tender. Meanwhile, Iranian steel mill KSC has floated an export tender for 20,000 tonnes (t) of billets and 50,000 t slab for mid-October shipment. According to BigMint's latest assessment, Iran's billet (3SP) export prices remained stable at $470/t FOB on 6 August, 2024.
- Indian billet export market awaits tender outcome: Indian billet export market is waiting for billet tender conclusion for price clarity. State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 20,000 t of prime rolled steel billets (90x90 mm, C20MMn Gr.A) on FOB ST delivery basis against irrevocable without recourse to drawer international letter of credit payable at sight terms. The last date for bid submission is 13 Aug'24 and delivery is scheduled for 30 September.
- Chinese billet prices fall w-o-w: Billet prices in Tangshan fell by RMB 70/t ($10/t) w-o-w to RMB 3,070/t ($428/t) on 9 August. Seasonal factors, decline in raw material, finished steel prices and rebar futures along with lower trades throughout the week weighed on billet prices. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) declined by RMB 102/t ($14/t) w-o-w to RMB 3,277/t ($457/t) on 9 August, 2024.
