Weekly round-up: Global billet market exhibits mixed trends

The global market for steel billets exhibited diverse trends this week. Notably, export tender conclusions were recorded in Iran. However, weak sentiment was witnessed in the Southeast Asia billet market amid lower trade activities due to bid-offer disparities.

Also, South East Asia's supply chain gap continues, due to a shortage of vessels and containers, which is driving up freight rates to unprecedented highs. Recent reports indicate that businesses across Malaysia, Thailand, Vietnam, and other neighbouring countries are facing significant challenges in securing shipping capacity, leading to disruptions and soaring costs.

Market highlights:

• SE Asia import billet prices decline w-o-w: South East Asia's imported billets market sentiments still continue to downtrend amid lower demand for billets in the region. Sluggish trading activities due to bid-offer disparities kept the billets market silent. BigMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $510-512/tonne (t) CFR Manila, a fall of around $9/t, w-o-w. Meanwhile, some billet (5SP) deals were heard to have concluded to Manila at around $505-510/t CFR.
  
  
• Vietnam's export offers stable w-o-w: Vietnam's BF-grade billet export offers stood stable w-o-w at around $500-505/t FOB with no active trades.
  
  
• Thailand's imported billet prices stable w-o-w: Thailand's imported billet offers dropped by $5-10/t w-o-w to stood at $515/t CFR.
  
  
• Indian billet export market awaits tender results: State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 30,000 t of steel blooms (150x150 mm, 3SP/4SP) on FOB ST delivery basis against 100% advance payment terms. The last date for bid submission is 19 June and delivery is scheduled for 5 August. India's billet exports stood at 39,308 t in May.
  
  
• Iranian billet export prices surge: The Iranian billet export market concluded a tender recently. An Iranian mill has concluded an export tender of 30,000 t of billets (3sp) at $482/t FOB for July 2024 shipment, sources informed BigMint. Prices have increased by around $4/t as against a previous deal concluded in mid-May. Additionally, another Iranian mill has concluded 30,000 t of billet export tender at $480/t FOB for July shipment. According to BigMint's latest assessment, Iran's billet (3SP) export prices inched up by $4/t w-o-w to $482/t FOB on 12 June, 2024. The Iranian government has imposed restrictions on electricity usage due to a power shortage. According to sources, steel industries are permitted to use full electricity only between 12 am and 8 am.
  
  
• China's steel billet prices fall w-o-w: Billet prices in Tangshan dropped significantly by RMB 30/t ($4/t) w-o-w to RMB 3,400/t ($467/t) on 14 June, 2024. Volatility in raw materials and finished steel prices, rebar futures throughout the week weighed on billet prices. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) decreased by RMB 18/t ($2/t) w-o-w to RMB 3637/t ($501/t) on 14 June, 2024.