Weekly round-up: Global billet prices remain lacklustre amid absence of billet tenders

The global billet market remained lacklustre this week, with prices subdued amid the absence of fresh billet tenders. Notably, Chinese participants were away from the market at the beginning of the week due to the Mid-Autumn Festival holiday. Additionally, the Iranian billet market witnessed the conclusion of an export tender at lower levels.

The Turkish imported bulk ferrous scrap index remained range-bound w-o-w. Market participants adopted a cautious approach, with mills monitoring the developments in China and holding back from trades, in expectation of the US Federal Reserve's interest rate decisions. Prices of ferrous scrap slightly declined, with strong offers posed by sellers due to low availability and high collection costs. Additionally, the present weakness in the German economy has pushed down dock prices marginally in the European Union (EU). According to BigMint's assessment, prices of US-origin HMS (80:20) bulk scrap stood at $370/tonne (t) CFR and remained stable w-o-w.

Market highlights

• SE Asia imported billet prices remain stable w-o-w post China holidays: Imported billet prices in Southeast Asia remained stable this week. Market participants are in wait-and-watch mode as Chinese players have returned from the Mid-Autumn Festival holidays. BigMint's bi-weekly assessment of billets (150 x 150 mm, 3SP) imported by the Philippines remained stable w-o-w at $460/t CFR Manila on 20 September.
  
  
• Vietnam's billet export offers stable w-o-w: Vietnam's blast furnace (BF)-grade billet export offers remained stable w-o-w at $465/t FOB. As per sources, in the domestic market, billet prices were at $480/t exw, higher than export prices, which kept trade activities on the lower side.
  
  
• Thailand's billet import offers were recorded at $470-475/t CFR, having increased by $15/t w-o-w.
  
  
• Chinese billet prices largely stable w-o-w: Billet prices in Tangshan remained largely stable, witnessing minor downward corrections by RMB 10/t ($1/t) w-o-w to RMB 2,900/t ($411/t) (inclusive of 13% VAT) on 20 September. The drop in rebar futures weighed on billet prices. However, demand continues to remain supportive. SHFE rebar futures (January 2025 delivery) inched down by RMB 2/t w-o-w to RMB 3,183/t ($451/t) on 20 September.
  
  
• Iranian billet market witness tender conclusion at lower levels: An Iranian steel mill has concluded an export tender for 30,000 t of billets, sources informed. The deal was heard to have closed at around $454/t FOB for mid-October 2024 shipment. Iran's semi-finished steel exports in the first five months of the current Persian year (21 March 2024-20 August 2024) stood at 2.54 million tonnes (mnt), a decrease of 18% compared to the same period last year, according to data from Petrometals. As per BigMint's latest assessment, Iran's billet (3SP) export prices dropped by $11/t w-o-w to $454/t FOB on 20 September.
  
  
• Indian billet export market awaits tender outcome: The Indian billet export market remained muted, with participants waiting for the conclusion of previous tenders for price clarity. Notably, no fresh export tenders were recorded in the region.