Weekly round up: Global billet prices fall amid lower offers w-o-w
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The global billet market showed weak sentiment this week, with lower offers and declining buying interest driving billet prices down. Additionally, a lack of export tenders was observed in the global market.
However, the Turkish imported ferrous scrap index rose w-o-w, as sellers maintained firm offers, sensing that mills were short on scrap supplies. At the beginning of August, the Turkish imported scrap market slowed due to pricing uncertainties. With substantial volumes of imported billets already secured for September, producers remained cautious about committing to scrap purchases and sought discounts. Mills had the advantage of time, while global steel and raw material prices were pressured by negative sentiment from China. According to BigMint's assessment, US-origin HMS (80:20) bulk scrap stood at $370/tonne (t) CFR, up by $6/t w-o-w.
Market highlights:
- SE Asia imported billet prices fall w-o-w: Imported billet prices in Southeast Asia fell significantly this week due to lower offers in the region and a cautious outlook from buyers regarding the sustainability of recent price increases. The sharp decline in Chinese billet prices and rebar futures has further pressured billet offers. According to BigMint's bi-weekly assessment, billets (150 x 150 mm, 3SP) imported by the Philippines were priced at $460/t CFR Manila, a decrease of around $10/t w-o-w. Current offers are notably ranging between $455-460/t CFR.
- Vietnam's billet export offers remain stable w-o-w: Vietnam's blast furnace (BF)-grade billet export offers remained unchanged w-o-w at $465/t FOB.
- Thailand billet import offers were recorded at $460-470/t CFR, down by $5-10/t w-o-w.
- Chinese billet prices fall w-o-w: Billet prices in Tangshan dropped by RMB 200/t ($28/t) w-o-w to RMB 2,760/t ($390/t) (inclusive of 13% VAT) on 6 September. Increasing port inventories, fall in raw materials, finished steel prices and rebar futures have weighed on billet prices throughout this week. SHFE rebar futures (January 2025 delivery) decreased by RMB 196/t ($28/t) w-o-w to RMB 3,026/t ($427/t) on 6 September.
- Iranian billet prices remain stable w-o-w: Iranian billet prices remained stable this week amid absence of export tender. According to BigMint's latest assessment, Iran's billet (3SP) export prices remained stable at $465/t FOB on 6 September.
- Indian billet export market awaits tender outcome: The Indian billet export market is waiting for the conclusion of a billet tender 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) and on FOB ST delivery basis against 100% advance payment terms. The last date for bid submission is 12 September and delivery is scheduled for 27 October. Additionally, RINL has floated an ocean sale export tender for 20,000 t of billets (prime rolled steel billets - 90 x 90 mm, C20MMn Gr.A) on FOB ST delivery basis against 'irrevocable without recourse to drawer international letter of credit payable at sight terms'. The last date for bid submission is 13 Sep'24, and delivery is scheduled for 29 Oct'24.
