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Weekly round up: Global billet market witnesses subdued sentiments

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17 Aug 2024, 13:24 IST
Weekly round up: Global billet market witnesses subdued sentiments

The global billet market is witnessing subdued sentiment and billet prices in China have recorded a significant drop this week. Additionally, billet producers remain cautious about floating tenders due to sluggish sentiment in the global market. However, this week an Iranian mill has concluded an export tender for mid-October 2024 shipment.

Notably, Turkish imported ferrous scrap for US-origin HMS (80:20) sharply dropped $10/tonnes (t) w-o-w, recorded at $371/t CFR on 16 August, as per BigMint's assessment. Turkish steel producers have remained inactive in the deep-sea scrap import market due to weak finished steel sales and the availability of low-cost billets from Asia, particularly China.

Market highlights

  • SE Asia import billet prices rangebound: Import prices in Southeast Asia remained rangebound this week. BigMint's bi-weekly assessment reported that billets (150x150mm, 3SP) imported by the Philippines were priced at $475-485/t CFR Manila. However, no transactions were reported at these levels.

  • Vietnam's billet export offers fall w-o-w: Vietnam's blast furnace (BF)-grade billet export offers fell by $5/t w-o-w at $465/t FOB. However, there was lack of billet tenders this week.

  • Thailand's billet import offers were recorded at $475/t CFR. Notably, absence of billet tender was observed this week.

  • Iranian steel mill concludes tender: An Iranian steel mill has finalised an export tender for 25,000 t of billets scheduled for shipment in mid-October. The deal was reportedly concluded at $472/t FOB, according to sources. As of 16 August, 2024, BigMint's latest assessment indicated that Iran's billet (3SP) export prices are in the range of $470-475/t FOB.

  • Indian export market awaits tender outcome: Indian billet export market is waiting for billet tender conclusion for price clarity. State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 30,000 t of blooms (prime concast steel billets - 150x150 mm, 3SP/4SP) on FOB ST delivery basis against 100% advance payment terms. The last date for bid submission is 16 August and delivery is scheduled for 30 September. India's billet exports stood at 32,175 t in Jun'24.

  • Chinese billet prices edge down w-o-w: Billet prices in Tangshan edged down by RMB 210/t ($29/t) w-o-w to RMB 2,860/t ($399/t) on 16 August. Rise in inventory level, decline in raw material, finished steel prices and rebar futures weighed on billet prices. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) dropped by RMB 199/t ($28/t) w-o-w to RMB 3,078/t ($430/t) on 16 August, 2024.

17 Aug 2024, 13:24 IST

 

 

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