Weekly round-up: Global billet prices soften amid bearish sentiments

Global billet prices continue the downward trend this week on subdued finished steel sentiments, limited trading activity and the absence of Chinese buying due to lockdown restrictions in the country.

The volatility in China's SHFE rebar futures and cheaper Russian billet offers kept deals at bay. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,638/t ($695/t) on 20 May 2022, witnessing a fall of RMB 32/t ($5/t) w-o-w. However, the same rose by RMB 59/t ($9/t), d-o-d.

Market highlights-

• Indian billet export price indications drop further: Indian BF-grade billet export price indications fell further on competitive offers from Indonesia, Iran and CIS. However, low demand continued to weigh on trade. SteelMint's bi-weekly price assessment for Indian billet exports (150*150mm, 3SP/4SP, BOF route) stood at around $685/t FOB on 20 May, down $10/t, w-o-w.
  
  
• Iranian billet export prices fall to three-month low: Iranian billet export prices witnessed a sharp drop following a deal concluded late last week. Declining global scrap prices, surging Covid-19 infections followed by the lockdown restrictions in China and cheaper Russian offers dragged down billet export prices to a three-month low, SteelMint notes. An Iranian mill concluded an export deal for 40,000 tonnes (t) of steel billets. The deal was concluded at around $610/t FOB for the mid-June 2022 shipment. Meanwhile, another Iranian mill floated a 20,000-t billet export tender with the due date being 23 May. The shipment is scheduled for mid-June. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $595/t FOB on 20 May, down $15/t, w-o-w. Other Iranian mills are learned to have postponed tender conclusions amidst falling bids.
  
  
• SE Asian billet import prices continue to slide: South East Asia's imported billet prices continued the downward trend this week due to no trading activity. Buyers adopted a wait-and-watch mode on more price cut expectations amid a continuous weakening of finished steel sales in the region. SteelMint's bi-weekly assessment of billets (150*150mm, 3SP) imported by the Philippines currently stands at around $670/tonne (t) CFR Manila, a fall of $38/t w-o-w.
  
  
• Vietnam's billet export offers down: Vietnam's BF-route billet export offers stood at around $640/t FOB, a sharp w-o-w drop of $55/t. Sluggish demand, falling prices of raw materials and domestic scrap continue to weigh down offers.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country hovered at around $700/t CFR, a drop of around $10/t, w-o-w. Also, offers from Russia were heard at around $650/t on CFR levels.
  
  
• China's billet prices fall towards the weekend: Steel billet prices in China's Tangshan witnessed a sharp fall of RMB 150/t ($22/t) w-o-w. Prices stood at RMB 4,510/t ($674/t), inclusive of 13% VAT, on 20 May.