Weekly round-up: Global billet market remains largely stable w-o-w
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Global billet market remained largely stable this week. Notably, absence of billet export tenders from Iran kept market inactive and prices unchanged. As per sources, in Southeast Asia (SE Asia), billet exporters are active amid strong buying interest and less competitive offers from Chinese steel mills. Billet tender conclusions were witnessed in the market this week, keeping prices supported.
Meanwhile, Turkish imported scrap prices remained largely stable as buyers kept quoting lower due to weaker domestic steel demand. US recyclers, on the other hand, resisted due to slow scrap inflows which saw around five to six cargoes getting booked from the country and the EU. Mid-week, Turkiye's imported scrap prices remained range-bound as most steelmakers are avoiding the imported material due to sluggish trading in the long products segment. BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $380/tonnes (t) CFR, largely stable with a mere $1/t rise w-o-w.
Market highlights:
- SE Asia billet import offers stable w-o-w: The Southeast Asian imported billets market remained robust this week. According to sources, billet import offers remained at the same levels w-o-w at $525-530/t CFR Manila. In addition, bids were recorded under $525/t CFR Manila. However, as per sources, some deals were heard concluded in the range of $520-525/t CFR Manila last week.
- Iranian billet export prices remain stable w-o-w: Iranian billet offers remained stable this week. According to BigMint assessment, billet prices stood at $478/t FOB.
- Vietnam's billet export offers for BF mills were recorded at the same levels of around *$500-505/t FOB Vietnam this week, drop of $15/t w-o-w. Meanwhile, a Vietnam-based steelmaker concluded a deal of 50,000 t of billets at around $495/t FOB Vietnam.
- Thailand's imported billet offers remained stable in a range of $525-530/t CFR this week.
- China's steel billet prices inch up w-o-w: Billet prices in Tangshan inched up by RMB 60/t ($8/t) w-o-w to RMB 3,560/t ($491/t) on 24 May, 2024 against 17 May. Prices include 13% VAT. Volatility in finished steel prices and increase in rebar futures kept supporting billet prices. SHFE rebar futures (October, 2024 delivery) increased by RMB 72/t ($10/t) w-o-w to RMB 3,788/t ($523/t) on 24 May, 2024.
