Weekly round-up: Global billet market reflects mixed price movements

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

Market highlights

• Iranian mills await tender outcome for semis exports: The Iranian steel billet and slab export markets remained inactive awaiting the outcome of tenders floated recently. Chadormalu floated an export tender for 30,000 t of steel billets with the due date being 6 September. The tender was heard cancelled with bids received at around $450/t FOB. Meanwhile, Khouzestan Steel Company (KSC) floated export tenders for 40,000 t each of steel billets and slabs. The shipments are likely to be scheduled for October. SteelMint's latest assessment of Iran billet (3SP) export prices stood at around $458/t FOB on 9 September, stable w-o-w.
  
  
• SE Asia billet import market sluggish: South-East Asia's imported billet market remained largely inactive this week due to the gap between bids and offers. SteelMint's biweekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $550/tonne (t) CFR Manila, an increase of around $13/t w-o-w. Meanwhile, billet offers from Dexin were heard at around $525/t FOB. However, bids are yet to improve as two parcels of 30,000 t and 50,000 t of steel billets were recently exported by Dexin Steel to Europe and East Africa at around $515-518/t on FOB basis.
  
  
• Vietnam's billet export offers unchanged: Vietnam's BF-grade billet export offers stood stable w-o-w at around $530/t FOB. According to market sources, demand for semi-finished steel was subdued in the region. However, increased scrap prices supported billet offers.
  
  
• Thailand's imported billet offers up: Indicative imported billet offers into the country are hovering at around $540/t CFR. However, bids continue to remain on the lower side at around $520/t CFR levels.
  
  
• China's billet prices rise towards weekend: Steel billet prices in China's Tangshan rose by RMB 60/t ($9/t) w-o-w. Prices stood at RMB 3,720/t ($537/t), including 13% VAT on 9 September. Hike in rebar futures, decline in inventories and improving demand in the market before the mid-Autumn festival kept domestic prices supported. According to data maintained with SteelMint, China's SHFE rebar futures contract for January 2023 delivery closed at RMB 3,791/t ($547/t) on 9 September, an increase of RMB 154/t ($22/t) w-o-w.
  
  
• China's imported billet market inactive: SteelMint's bi-weekly assessment for billet import prices currently stands at $500/t CFR, an increase of around $16/t w-o-w. However, weak demand still prevails in the market as no significant trade was reported at current offers, SteelMint notes.