Weekly round-up: Global billet prices rebound, trade activities yet to improve

Global billet prices rebounded this week tracking a recovery in scrap prices and a surge in Chinese steel futures. However, trade activties are yet to pick up. The market was active but due to low buying interest amid bid-offer disparities, no deal was concluded.

According to data maintained with SteelMint, rebar futures for October 2023 contract on the Shanghai Futures Exchange (SHFE) stood at RMB 3,711/tonne (t) ($521/t) on 9 June, an increase of of RMB 115/t ($16/t) w-o-w.

Market highlights-

• India mill floats billet export tender: State-owned Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery basis against 100% advance payment terms. India's steel billet exports stood at 91,754 t in Apr'23.
  
  
• Iran's billet export prices almost stable: Iran's steel billet export prices remained range-bound at $485-495/t FOB. No movement was noticed in the market and fresh deals are yet to be seen. However, mills are eyeing higher prices in the upcoming tenders.
  
  
• SE Asia's imported billet prices range-bound: South East Asia's imported billet prices remained range-bound this week. SteelMint's bi-weekly assessment of blast furnace (BF)-route billets (150x150mm, 3SP) imported by the Philippines remained largely stable at around $520/t CFR Manila.
  
  
• Vietnam's billet export offers surge: Vietnam's BF-grade billet export offers surged by $45/t w-o-w to $515/t FOB.
  
  
• Thailand's imported billet prices rise: Imported billet prices into Thailand rose by $15-20/t w-o-w at stand at $535-540/t CFR.
  
  
• Chinese billet prices at six weeks high: Billet prices in China's Tangshan surged by RMB 180/t ($25) w-o-w to RMB 3,540/t ($496/t), including 13% VAT on 9 June. The price levels are at a six-week high. The rise in finished steel prices and rebar futures kept billet prices supported.