Weekly round-up: Global billet prices exhibit negative trend on subdued sentiments

Global billet prices continued the downward trend this week on weak finished steel sentiments, limited trading activity and cheaper Russian billet offers.

The volatility in China's SHFE rebar futures triggered a fall in prices. According to data maintained with SteelMint, the SHFE rebar futures contract for October 2022 delivery closed at RMB 4,576/t ($682/t) on 27 May, witnessing a fall of RMB 62/t ($9/t) w-o-w. However, prices rose by RMB 71/t ($10/t) d-o-d.

Market highlights-

• Indian billet export price indication drops further: Indian BF-grade billet export prices tumbled on falling bids and sluggish global demand. Bid-offer disparities kept trade activities limited. Market sources inform that Indian mills were still looking for price levels of around $610-630/t FOB. However, there was a gap between bids and offers. Bids were heard in the range of $570-580/t FOB.
  
  
• Iranian billet export market quiet: The Iranian billet export market remained silent throughout the week with no significant deal concluded. Bid-offer disparities and cheaper Russian billet offers dragged down billet export prices, SteelMint notes. Market participants adopted a wait-and-watch stance amid falling bids and prices. Meanwhile, a major semi-finished steel exporter from Iran, Khouzestan Steel Company, opened export tenders for 40,000-50,000 t each of steel billet and slab with the due date being 31 May. The shipments are likely to be scheduled for early August. SteelMint's assessment of Iran billet (3SP) export prices stood at $580/t FOB on 27 May, down $23/t w-o-w.
  
  
• SE Asian billet import market silent: South East Asia's billet import market remained silent throughout this week due to muted trading activity. Bid-offer disparity, cheap Russian billet offers and the weakening in finished steel sales in the region continued to keep buyers out of the market. SteelMint's bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $640/tonne (t) CFR Manila, down $35/t w-o-w. Some offers were also heard at higher levels of $655/t CFR Manila.
  
  
• Vietnam's billet export offers rangebound: Vietnam's BF-route billet export offers stood at around $640/t FOB, a sharp w-o-w drop of $55/t. Sluggish demand, falling prices of raw materials and domestic scrap continued to weigh down offers.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country hovered at around $700/t CFR, a drop of around $10/t, w-o-w. Also, offers from Russia were heard at around $650/t on CFR levels.
  
  
• China's billet prices fall towards weekend: Steel billet prices in China's Tangshan witnessed a fall of RMB 60/t ($9/t) w-o-w. Prices stood at RMB 4,450/t ($664/t), inclusive of 13% VAT, on 27 May.