Weekly round-up: Global billet prices exhibit mixed trend post-CNY holidays

• Global billet market remains lacklustre
  
  
• Chinese market resumes slowly after CNY holidays
  
  

Global billet prices showed diverse trends this week. Billet players have started floating export tenders in the global market. Meanwhile, trade activities are dull, as post CNY holidays billet players are adopting a wait-and-watch approach to get price clarity.

Market highlights:

• SE Asia billet import market stays firm: Southeast Asian imported billet market stayed supported this week. Billet import prices have not shown any improvement, as there was hope that post-CNY holidays the market will rise, but market sentiments have been down. Sources informed that a cargo was booked at the same level i.e. $540/tonnes (t) CFR Manila. However, bids were heard in the range of around $535-540/t CFR Manila. According to BigMint's bi-weekly assessment, billet import prices remained stable w-o-w at $540/t CFR Manila.
  
  
• Iranian export prices stable w-o-w: Iran's billet export prices stayed firm this week at $510/t FOB on 23 February, 2024, according to BigMint's latest assessment. Furthermore, the Iranian billet export market is silent due to absence of Chinese billet players, resulting in low trade volumes. However, as per sources, Iranian mill Esfahan Steel Company (ESCO) has floated an export tender of 30,000 t of billet, for mid-May shipment.
  
  
• Thailand's imported billet offers remained at $550/t CFR Thailand.
  
  
• Indonesian steelmaker Dexin Steel reduced its offer to around $520/t FOB, as per sources.
  
  
• Vietnam's billet export offers stood at $535/t FOB, witnessing a decrease w-o-w. Meanwhile, domestic prices for BF and IF route billets were heard at around $530/t exw and $525/t exw, respectively.
  
  
• Indian billet export price indication is at around $515/t FOB as mills seem to be eyeing higher offers due to lower supplies globally, as per sources. In addition, State-owned Vizag Steel (RINL) floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The last date for bid submission is 27 February, and the delivery is scheduled for 10 April.
  
  
• Chinese billet prices head south post-CNY holidays: Chinese billet prices declined by RMB 80/t ($11/t) to RMB 3,550/t ($493/t) on 23 February against 19 February. Lower trade resulting in higher inventories, volatility in finished steel prices and rebar futures weighed on billet prices. Meanwhile, Chinese SHFE rebar futures decreased by RMB 18/t ($2/t) to RMB 3,790/t ($526/t) on 23 February against 19 February.