Weekly round-up: Global billet prices show positive sentiment, Chinese players active
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The global billet market showed positive sentiment this week, driven by active participation from Chinese market players pushing prices upward. However, trading activity remained limited globally as rising billet offers met with buyer resistance. The market reached a standstill following a sharp price rise earlier in the week, fuelled by upcoming holidays and expectations of stimulus measures. Traders have noted that buyers are struggling to keep pace with the rapid price increases.
Market highlights
- SE Asia's imported billet prices rise w-o-w: Imported billet prices in Southeast Asia edged up this week. Market participants were active as Chinese players are procuring material prior to upcoming holidays in the first week of October, dragging billet offers up. BigMint's bi-weekly assessment of billets (150 x 150 mm, 3SP) imported by the Philippines rose by $5/tonnes (t) to $465/t w-o-w CFR Manila. Billet import offers stood at the range of $465-470/t CFR Manila.
- 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.
- Thailand's billet import offers were recorded at $485-490/t CFR, rising by $10/t w-o-w.
- Chinese billet prices rise w-o-w: Billet prices in Tangshan increased by RMB 150/t ($21/t) to RMB 3,050/t ($435/t) w-o-w (inclusive of 13% VAT) on 27 September. Volatility in finished steel prices and rebar futures has supported billet prices. SHFE rebar futures (January 2025 delivery) inched up by RMB 17/t ($2/t) to RMB 3,200/t ($456/t) w-o-w on 27 September.
- Iranian billet market witness export tender conclusion: An Iranian steel mill has concluded an export tender for 80,000 t of billets, sources informed. The deal was heard concluded at around $455/t FOB for Nov'24 shipment. Iran's semi-finished steel exports in the first five months of the current Persian year (21 Mar'24-20 Aug'24) stood at 2.54 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 remained stable w-o-w at $454/t FOB on 27 September.
