Weekly round-up: Global billet market exhibits mixed trends

The global billet market showed mixed trends this week on weak finished steel sentiments, limited trading activity and bid-offer disparities. However, a recovery in scrap prices may support global billet offers in the near term.

Market highlights

• Indian billet export market remains inactive: Indian blast furnace (BF)-grade billet export market remained inactive this week amid low demand and firm offers. The gap in bids and offers widened owing to increased prices in the domestic market. As per sources, steel mills in India are not ready to sell at lower rates as they are experiencing cost pressure. No billet export tender was heard so far this week. On the other hand, the domestic market has improved over the last couple of days.
  
  
• Iranian mills float 80,000 t export tenders: The Iranian billet export market gained momentum after remaining silent last week. Steel mills like ESCO, SISCO and SJSCO floated around 80,000 t of billet export tenders this week. Trade is likely to resume after a short pause. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $510/t FOB on 5 July, up marginally by around $4/t, w-o-w.
  
  
• SE Asia's billet import market remains sluggish: South East Asia's imported billet market remained inactive due to the gap between bids and offers. The weakening of buying sentiments in a subdued finished steel market in the region held back trade. Billet offers by a few suppliers were heard to have strengthened post-hike in scrap offers. However, bids are yet to see any significant improvement. SteelMint's bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $575/t CFR Manila, a marginal decrease of around $5/t w-o-w.
  
  
• Vietnam's billet export offers edge down: Vietnam's BF-grade billet export offers stood at around $535/t FOB, a w-o-w decrease of around $10/t. However, no significant deals were heard concluded at current offers.
  
  
• Thailand's imported billet prices fall: Indicative imported billet prices into the country are hovering around $570/t CFR, a decrease of around $30/t as against prices recorded towards end June. Weak demand due to the onset of the monsoon and the price gap between seller and buyer continue to weigh on prices.
  
  
• China's billet prices fall towards weekend: Steel billet prices in China's Tangshan witnessed a significant fall of RMB 80/t ($12/t) w-o-w following a decline in rebar futures. Prices stood at RMB 3,920/t ($585/t), inclusive of 13% VAT, on 9 July. According to data maintained with SteelMint, the SHFE rebar futures contract for October 2022 delivery closed at RMB 4,196/t ($626/t) on 8 July, witnessing a significant fall of RMB 69/t ($10/t) w-o-w.