Weekly round-up: Global billet prices on downtrend amidst bearish sentiments

Global billet prices continued to exhibit a general downtrend this week on a largely subdued finished steel market, limited trading and bid-offer disparities.

The volatility in China's SHFE rebar futures has impacted prices. According to data maintained with SteelMint, China's SHFE rebar futures contract for October delivery closed at RMB 4,189/t ($626/t) on 24 June, witnessing a sharp fall of RMB 165/t ($25/t) w-o-w.

Market highlights

• Subdued bids weigh on Indian billet export market: Falling steel and scrap prices globally continue to weigh on Indian billet export prices. As per market sources, Indian primary mills are still looking for price levels of around $610-620/t FOB, considering the cost of production. However, the price levels are not in line with the current market scenario. Deals have dried up due to low market interest. A few private players are heard offering billets for exports but prices are yet to be discovered. However, other market participants indicate that Indian billet export offers should be lesser than $570-580/t CFR level for South East Asia. Meanwhile, State-owned Steel Authority of India Ltd (SAIL) has floated an ocean sale export tender for 18,900 t of prime mild steel non-alloy concast billet (125x125x9000/12000 mm, 4SP/5SP) as against irrevocable L/C without recourse to drawer L/C payable at sight terms. The due date for the tender is 27 June and the delivery is scheduled for 31 August.
  
  
• Iranian billet export prices fall to over one-year low: Iranian billet export prices witnessed a sharp drop in recently-concluded deals. Declining global prices, low bids, limited trades and cheaper billet offers from Russia continued to drag down billet export prices to over a one-year low, SteelMint notes. An Iranian mill concluded an export deal for 40,000-50,000 t each of steel billets and slabs. Both the deals were concluded at $530/t FOB for end-August shipments. Iran's billet and slab export prices have fallen by around $30/t and $40/t, respectively as against the company's last concluded tender in the beginning of June. Meanwhile, another export tender for 30,000 t of steel billets received bids at around $532/t FOB for July shipment. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $530/t FOB on 24 June, down around $25/t, w-o-w.
  
  
• SE Asia's imported billet prices fall to over one-year low: South East Asia's imported billet prices witnessed a significant drop in a recently concluded tender. Lower bids, limited trade, and subdued finished steel sentiments in the region have continued to drag down billet import prices to over a one-year low, SteelMint notes. A Vietnamese mill concluded an export deal for 20,000 t of BF-route billets at around $580/t CFR Manila, sources informed SteelMint. SteelMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $585/t CFR Manila, a drop of around $57/t, w-o-w.
  
  
• Vietnam's billet export offers drop $50/t w-o-w: Vietnam's BF-grade billet export offers stood at around $560/t FOB, a w-o-w decrease of around $50/t.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country were hovering at around $600/t CFR, a fall of around $25/t, w-o-w. Weak demand due to the onset of the monsoon and the price gap between seller and buyer has weighed on prices.
  
  
• China's billet prices slump towards weekend: Steel billet prices in China's Tangshan witnessed a sharp fall of RMB 280/t ($42/t) w-o-w following a steep decline in rebar futures. Prices stood at RMB 3,900/t ($583/t), inclusive of 13% VAT, on 25 June.