Weekly round-up: Global billet market displays mixed sentiments

This week, the global billet market displayed mixed sentiments. A recent billet tender concluded at higher levels, and limited billet offers were noted in the global market due to the winter season. Billet players are adopting a wait-and-watch approach for clarity on billet prices.

Meanwhile, imported scrap prices in Turkey witnessed a decline this week. According to SteelMint, HMS 1&2 (80:20) prices from the US were at $425/tonne (t) CFR, marking a $3/t decrease w-o-w. The ongoing drop in imported scrap prices in Turkey is attributed to some mills securing cargoes for January, coupled with gradual scrap flow and a subdued appetite. This suggests minimal price movement this week, with uncertainty about Turkish buyers returning to support higher prices.

Market highlights:

• Indian billet export market remains slow: Last week, RINL, the state-owned Vizag Steel, floated an ocean sale export tender for 30,000 t of steel blooms with FOB ST delivery on 2 December. According to sources, deals have remained subdued due to bid-offer disparity.
  
  
• Vietnam's export offers inch up w-o-w: Vietnam's BF-grade billet export offers inched up by $10-15/t w-o-w to $525-530/t FOB.
  
  
• SE Asia billet offers remain range-bound w-o-w: South East Asia's imported billet offers remained range-bound w-o-w. Currently, billet players are inactive and limited offers in the region have restricted billet price movements this week, SteelMint observed. Billet import offers for 5 SP grade were heard at around $535/t CFR Manila, remaining range-bound w-o-w.
  
  
• Iranian billet export offers may rise post-recent deal conclusion: Iranian billet export prices were on the rise, reflecting an upward trend in the market. A recently-concluded export tender and concerns about gas supply shortages in the domestic market until the end of winter are contributing to this trend. Iranian steel producers are facing challenges in maintaining operations, leading to reduced production. Sources indicate that Chadormalu Mining and Industrial Company, an Iranian mill, concluded a 30,000 t of billet export tender at $480/t FOB this week. Other mills anticipate export prices to rise to the range of $490-495/t FOB. According to an Iranian website, American Senator Mr. Kevin Cramer has requested President Joe Biden of The United States to impose sanctions against Iran's steel exports and oil sales.
  
  
• Chinese billet prices fall w-o-w: Chinese billet prices fell by RMB 80/t ($11/t) to RMB 3,630/t ($511/t) on 15 December against 8 December levels. Subdued rebar futures, fall in finished steel prices and weak demand due to the winter season weighed on billet prices. Chinese SHFE rebar futures dropped by RMB 127/t ($18/t) w-o-w to RMB 3,915/t ($551/t) today.