Weekly round-up: Global billet market remains weak amidst thin trading

The global billet market witnessed dull sentiments throughout the week due to several factors such as bid-offer disparities, absence of firm buying interest and drop in bids resulting in limited deals.

Market highlights

• Indian billet export market inactive: Indian BF-grade billet export trade continued to remain inactive as buyers kept away from the market. Steel mills in India are not ready to sell at lower rates as they are getting better realisation in the domestic market. State-owned Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery basis against an irrevocable letter without recourse to drawer international letter of credit payable at sight terms. The due date for the tender was 2 August 2022. According to market sources, the tender failed to receive response.
  
  
• Iranian billet export prices drop further: Iran's billet export market remained largely inactive this week with prices falling further in recently-concluded deals. Declining global scrap prices, low bids and limited trade have dragged down billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 25,000 t of steel billets at around $450/t FOB, sources informed. The shipment is likely to be scheduled for September. Prices have corrected by around $10/t as against the last concluded tender at the beginning of this week. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $460/t FOB on 2 August, a decline of around $13/t w-o-w.
  
  
• SE Asia's billet import market silent: South East Asia's imported billet market sentiments continued to weaken on low buying interest. The weakness stems from the subdued finished steel market in the region, bid-offer disparities and falling global scrap prices. SteelMint's bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at $525/t CFR Manila, up $8/t w-o-w. Offers are at around $550/t CFR. However, bids continue to remain on the lower side and were heard at $510/t CFR. With the recovery in global scrap prices, billet prices may also find support, market participants informed.
  
  
• Vietnam's billet export offers unchanged: Vietnam's BF-grade billet export offers stood at $495/t FOB, stable w-o-w. However, no deals were heard concluded this week.
  
  
• Thailand's imported billet prices inch down: Indicative imported billet prices into the country are hovering at around $520/t CFR, down $15/t w-o-w. Weak demand and falling finished longs prices in the region due to the onset of monsoon continue to weigh on billet import prices.
  
  
• China's billet prices rise towards weekend: Steel billet prices in China's Tangshan rose by RMB 80/t ($12/t) w-o-w to RMB 3,710/t ($549/t), including 13% VAT, on 5 August. According to SteelMint data, China's SHFE rebar futures contract for October delivery closed at RMB 4,036/t ($597/t) on 5 August, an increase of RMB 40/t ($6/t) w-o-w.