Weekly round-up: Global billet market shows lacklustre sentiment

The global steel billet market continues to show limited activity as issued tenders remain few due to subdued market sentiment. BigMint notes that participants are adopting a cautious approach, influenced by factors such as the monsoon season, a sluggish rebar market, electricity outage and subdued buying interest globally.

Market highlights

• SE Asia billet import prices stable w-o-w: South East Asia's imported billet prices remained unchanged this week. Weak demand in China amid the ongoing Third Plenum and its uncertain impact on the broader economy affected the market. Meanwhile, market participants have remained silent and no tenders were heard floated in the region. Billet (150x150mm, 5SP) offers are at $495-500/tonnes (t) CFR Manila and bids are around $490/t CFR Manila. According to BigMint's bi-weekly assessment, billet (150x150mm, 3SP) imported by the Philippines was assessed at $494/t CFR Manila, unchanged compared to the last assessment on 16 July.
  
  
• Vietnam's billet export offers drop: Vietnam's BF-grade billet export offers dropped by $18/t w-o-w to $472/t FOB. As per sources, a deal of 20,000 t billets was concluded at $472/t FOB.
  
  
• Iranian market impacted by electricity shortage: Iran's billet export market remained silent due to electricity shortage in the country. According to BigMint's bi-weekly assessment, Iranian billet export prices were at $478/t FOB. The domestic market for steel in Iran has been significantly impacted by electricity consumption limitations and power outages affecting steel companies. This disruption has disturbed the natural supply order in the steel market. Notably, billet prices on the IME for the week ending 19 July has dropped to the lowest level observed in the current Persian year.
  
  
• Indian billet export market muted: Indian billet export prices have remained stagnant with the market showing subdued activity. Recent tenders have yielded inconclusive results, primarily due to domestic billet prices being higher than global benchmarks.
  
  
• Chinese billet prices inch down w-o-w: Billet prices in Tangshan fell by RMB 20/t ($3/t) w-o-w to RMB 3,270/t ($450/t) on 19 July. Weaker demand and volatility in raw materials, finished steel prices, rebar futures throughout the week weighed on billet prices. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) declined by RMB 44/t ($6/t) w-o-w to RMB 3,479/t ($479/t) on 19 July, 2024.