Weekly round-up: Global billet price trends (Week 51, 2024)
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- Weak buying interest weighs on trade activities
- Market participants anticipate near-term price reduction
Steel billet prices in the global market continued to decline this week, driven by a sluggish long steel sector and weakened market sentiment in China. No deals were reported this week, with many buyers adopting a wait-and-see approach due to the price declines in China, anticipating further price reduction in the near term.
Market highlights
- SE Asia imported billet prices fall w-o-w: Imported billet offers in Southeast Asia fell w-o-w, amid a deteriorating outlook and stagnant demand due to the approaching Christmas holidays. No deals were reported this week, with many buyers adopting a wait-and-watch approach due to price declines in China. Offers for billets (150 x 150 mm, 5SP) imported by the Philippines were heard at around $460-465/t CFR Manila, down $10/t w-o-w on 20 December. Additionally, Japan originated billet were recorded offering at $462/t CFR Manila and offer for China originated billet is at $460/t CFR Manila, source informed BigMint.
- Vietnam's blast furnace (BF) grade billet export offers fell by $5/t w-o-w to stood at $455/t FOB on 20 December. Absence of trades due to high billet offer in the region, source informed.
- Iranian billet market muted: The Iranian billet export market remained muted, as lack of export tenders were witnessed this week. Notably, Iranian billet prices inched down by $5/t w-o-w stand at $453/t FOB on 20 December.
- Chinese billet prices down RMB 60/t (8/t) w-o-w: Billet prices in China's Tangshan fell by RMB 60/t ($8/t) w-o-w to RMB 3,040/t ($417/t), including 13% VAT, on 20 December. Weak demand, coupled with rising port inventories and declining raw material and finished steel prices, have driven billet prices lower. Meanwhile, SHFE rebar futures (May 2025 delivery) dropped by RMB 81/t($11/t) to RMB 3,279/t ($449/t) on 20 December, 2024.
