Weekly round-up: Global billet market sees slowdown in activity amid holidays in China

Negative sentiments continued to prevail this week in the global billet market due to factors such as bid-offer disparities, absence of firm buying interest and drop in bids from key importing countries, resulting in limited deals. Meanwhile, the market also slowed down as China remained inactive this week owing to the National Holidays.

Market highlights

• Iranian billet export market sees limited trading: Iran's billets export market remained silent this week with prices remaining stable w-o-w. Low bids from the key importing nations, limited trades and competitive offers from Russia weighed on the export market. However, prices remained supported amid hike in global scrap prices, SteelMint noted. Moreover, economic activity in Iran is getting hampered due to the pending political negotiations involving the Joint Comprehensive Plan of Action (JCPOA), sources shared. Meanwhile, an Iranian mill concluded an export deal for 30,000 t of steel billets at around $463/t FOB, sources told SteelMint. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $463/t FOB on 7 October, up $3/t w-o-w.
  
  
• SE Asia's imported billet market weak: South East Asia's imported billets market continued to remain silent on low buying interest amid subdued finished steel demand in the region, bid-offer disparities and natural calamities, SteelMint notes. SteelMint's bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $540/tonne (t) CFR Manila, a fall of around $12/t w-o-w. Meanwhile, 40,000 t of steel billets were recently exported by Dexin Steel to the Philippines at around $512/t FOB, sources informed SteelMint.
  
  
• Vietnam's export offers unchanged w-o-w: Vietnam's BF-grade billet export offers stood unchanged w-o-w at around $535/t FOB. However, falling scrap prices and modest demand for finished steel in the region have weighed on the export market.
  
  
• Thailand's imported billet market sees low buying: Thailand's imported billet market witnessed low buying amid bid-offer disparities. Recently, Iranian billets were pitched to Thailand at around $463/t FOB which would roughly translate to around $510-515/t CFR. However, bids are prevailing at around $500/t CFR.