Weekly round-up: Global billet market exhibits mixed trends

The global billet market exhibited mixed sentiments this week. Billet tender volumes have been dropped amid lackluster activities, except Iran, SteelMint noted. Billet players are preferring material of Middle-East region in the global level as the Iran-based billet prices are more acceptable.

Meanwhile, Turkiye's imported scrap prices have declined this week. According to SteelMint, HMS 1&2 (80:20) prices from the US stood at $422/tonnes (t) CFR, inched down by $3/t w-o-w.

Market highlights:

• Iranian billet export market lacks clarity on uncertainty over duties: Iran's billet export market experienced a lack of activity this week as mills refrained from issuing export tenders due to uncertain sentiments regarding export duties on billet prices in the region. Chadormalu Mining, an Iranian steel mill, concluded an export tender for 30,000 t of billets at approximately $487/t FOB, according to sources. SteelMint's latest assessment indicates that Iran's billet (3SP) export prices remained unchanged w-o-w at $490/t FOB on 18 January, 2024. Meanwhile, in the domestic market, the ongoing gas shortage during winter continued to impact production.
  
  
• SE Asia billet import offers remain stable w-o-w: Southeast Asia's imported billet offers for the 5 SP grade were reported at approximately $550-560/t CFR Manila, remained largely stable w-o-w. Meanwhile, the bids for 5 SP were unchanged w-o-w, standing at around $540/t CFR on 19 January.
  
  
• Indonesian steelmaker was offering 3SP billet at $545/t FOB.
  
  
• Japanese 5SP billets were offered at $555/t CFR Manila.
  
  
• Thailand's imported billet offers inch up: Imported billet offers from the ASEAN region into Thailand were recorded a slight up by $2-3/t to $550/t CFR Thailand.
  
  
• Chinese billet prices drop w-o-w: Chinese billet prices dropped by RMB 10/t ($1/t) to RMB 3,590/t ($502/t) on 19 January against 12 January. Recovery in rebar futures has supported billet prices. However, lower trades, decreasing raw materials and finished steel prices have continued to be a matter of concern. Meanwhile, Chinese SHFE rebar futures increased by RMB 13/t (2/t) w-o-w to RMB 3,915/t ($550/t) today.