Weekly round-up: Global billet prices show divergent trends

• Chinese buyers active post holidays
  
  
• South-east Asian billet market sees active trade
  
  

Global billet prices exhibited diverse trends this week. The billet market witnessed active deals in South-east Asia, as Chinese buyers are active in the global market post holidays. However, export tenders are not yet concluded owing to bid-offer disparities.

Meanwhile, Turkish imported scrap prices continued to edge down as buyers pulled workable price levels lower whereas European recyclers resisted due to slow scrap inflows and firm collection costs. A few suppliers targeted $382-384/t CFR Turkiye for HMS (80:20) keeping in mind dockside prices of Euro 315-317/t ($339-$341) and low availability.

Market highlights:

• SE Asia billet import offers rangebound w-o-w: The South-east Asian imported billet market witnessed some billet offers this week. This happened due to Chinese billet players have returned to the market post-holidays. Meanwhile, a trade of 10,000 t billet (5SP) was recorded at $525/t CFR Manila for June or early July shipment. According to sources, billet import offers remained rangebound w-o-w to $520-530/t CFR Manila. However, some Vietnam based mills have also floated IF route billet offer at around $505/t FOB, for July month shipment.
  
  
• Iranian billet export prices stable w-o-w: Iranian billet offers remained stable this week. As absence of export tenders were recorded this week. According to BigMint assessment, billet prices stood at $478/t FOB.
  
  
• Vietnam's export offers for IF-route billets were recorded at the same levels of around $515-520/t FOB this week. In addition, billet offers of blast furnace route stood at $505/t FOB.
  
  
• Thailand's imported billet offers stood stable at the range of $530-535/t CFR Thailand this week.
  
  
• China's billet prices edge down: Billet prices in Tangshan dropped by RMB 40/t ($5/t) to RMB 3,460/t ($479/t) on 10 May, 2024 against 6 May, 2024 post-holidays. Prices include 13% VAT. Notably, volatility in raw material, finished steel prices and falling rebar futures weighed on billet prices. SHFE rebar futures (October, 2024 delivery) fell by RMB 73/t ($10/t) to RMB 3,662/t ($507/t) on 10 May.