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Weekly round up: Global billet market witnesses weak market sentiment amid falling prices

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BigMint Bureau

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10 Aug 2024, 13:45 IST

Weekly round up: Global billet market witnesses weak market sentiment amid falling prices

The global billet market experienced weak sentiment this week, driven by reduced buying interest from overseas buyers and declining prices for billet and rebar. However, some activity was noted as an Iranian steel mill floated a significant export tender.

Market highlights:

SE Asia import billet prices drop w-o-w: Southeast Asia's imported billet prices declined this week, reflecting continued weakness in the Chinese market. Buyers in the region have reduced their interest, anticipating further price drops. According to BigMint's bi-weekly assessment, billets (150x150mm, 3SP) imported by the Philippines were assessed at $480/tonnes (t) CFR Manila, down by $5/t from the previous week. Notably, previous offers for billets (150x150mm, 5SP) were lower at $475-485/t CFR Manila. However, transaction activity was limited this week.

Vietnam's billet export offers stable w-o-w: Vietnam's blast furnace (BF)-grade billet export offers remained stable at $470/t FOB this week. Despite the stability, the market saw a lack of billet tenders.

Iranian billet prices remain constant w-o-w: Iranian billet export prices remained stable this week, with the market witnessing an active export tender. Iranian steel mill KSC has floated an export tender for 20,000 t of billets and 50,000 t of slab, scheduled for mid-October shipment. According to BigMint's latest assessment, Iran's billet (3SP) export prices remained unchanged at $470/t FOB as of 6 August, 2024.

Indian billet export market awaits tender outcome: India's billet export market is awaiting the conclusion of a tender for price clarity. State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 20,000 t of prime rolled steel billets (90x90 mm, C20MMn Gr.A) on an FOB ST delivery basis. The tender operates under irrevocable, without recourse to drawer, international letter of credit terms payable at sight. The last date for bid submission is 13 August 2024, with delivery scheduled for 30 September.

Chinese billet prices fall w-o-w: Billet prices in Tangshan fell by RMB 70/t ($10/t) w-o-w to RMB 3,070/t ($428/t) as of 9 August 2024. Seasonal factors, declines in raw material and finished steel prices, lower rebar futures, and reduced trading activity contributed to the drop in billet prices. Prices include 13% VAT. Meanwhile, SHFE rebar futures (October 2024 delivery) declined by RMB 102/t ($14/t) w-o-w to RMB 3,277/t ($457/t) as of 9 August 2024.