Weekly round up: Global billet market exhibits positive sentiments

The global billet market exhibited positive sentiment this week. Recovery in Chinese billet prices, rebar futures market and conclusion of billet export tenders in the Middle East supported billet prices in the global market.

The Turkish imported bulk ferrous scrap index has rebounded from a low of $360/tonne (t) CFR, with firmer offers now reported at $368-370/t from the US, indicating a sellers' market. The sell-side market sentiment is strengthening further as the shortsea-deepsea price spread narrows and mills show increased interest in ferrous scrap. As a result, Turkish deepsea imported ferrous scrap prices have edged higher. BigMint's assessment for US-origin HMS (80:20) bulk scrap stands at $364/t CFR, up by $4/t w-o-w.

Market highlights

• SE Asia imported billet prices rise w-o-w: Imported billet prices in Southeast Asia recorded an increase this week following an uptick in the Chinese rebar futures market. Notably, buyers in the Southeast Asia region remained cautious over the sustainability of higher offers. BigMint's bi-weekly assessment reported that billets (150 x 150 mm, 3SP) imported by the Philippines were priced at $470/t CFR Manila, an increase of around $7/t w-o-w. Notably, offers are ranging at around $470-475/t CFR.
  
  
• Thailand billet import offers were recorded at $470-475/t CFR.
  
  
• Offers from Indonesia were heard to be at around $450 FoB towards the beginning of the week.
  
  
• Chinese billet prices inch up w-o-w: Billet prices in Tangshan inched up by RMB 60/t ($8/t) w-o-w to RMB 2,960/t ($417/t) (inclusive of 13% VAT) on 30 August. The volatility in raw material prices, finished steel prices, and rebar futures supported billet prices this week. SHFE rebar futures (October 2024 delivery) increased by RMB 68/t ($10/t) w-o-w to RMB 3,222/t ($454/t) on 30 August.
  
  
• Iranian billet export tenders conclude: According to BigMint's latest assessment, Iran's billet (3SP) export prices remained stable at $465/t FOB on 27 August. An Iranian steel mill has concluded an export tender for 30,000 t of billets for a late September shipment, sources informed. The deal was heard to have concluded at $465/t FOB.
  
  
• Indian export market awaits tender outcome: The Indian billet export market is waiting for the conclusion of a billet tender for price clarity. State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 30,000 t of blooms (prime concast steel billets - 150 x 150 mm, 3SP/4SP) on FOB ST delivery basis against 100% advance payment terms. The last date for bid submission is 3 September 2024, and delivery is scheduled for 15 October.