Weekly round-up: Global billet prices under pressure amid bid-offer disparity

The global billet market remained silent this week as price disparity between sellers and buyers kept trades at bay, SteelMint notes.

Falling global scrap prices and volatility in rebar futures continue to weigh on billet import prices. According to data maintained with SteelMint, China's SHFE rebar futures stood at RMB 3,622/tonne (t) ($524/t), a decrease of RMB 38/t ($5/t) w-o-w.

Meanwhile, Turkiye's imported scrap prices fell by around $15/t w-o-w. However, scrap prices bounced back amid improved finished steel demand as a bunch of deals were concluded at increased prices. Recovery in global scrap prices might provide some support to billet prices in the near future.

• Indian billet export market muted: Indian mills may be trying for $550-560/t FOB levels, however, workable price indications are currently much lower given lower bids from importing nations. However, buyers are still resisting current prices. Meanwhile, State-owned Vizag Steel has floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission for the tender is 17 May and the delivery is scheduled for 30 June.
  
  
• Iran's billet export prices under pressure: Iran's steel billet export prices remained under pressure and tenders floated for exports fetched limited response and low bids. Low demand from key importing nations, a steep drop in Turkiye's imported scrap prices and a decline in bids weighed on the billet export market. Market sources highlighted that bids are currently around $460/t FOB. However, mills are still looking for prices at around $470/t FOB. Notably, current indications are lower by $20-30/t w-o-w.
  
  
• SE Asia's imported billet market slows down: South East Asia's imported billet market is slowing due to slow movement in the finished long steel segment. Billet prices saw a significant drop w-o-w amid bearish market sentiments. SteelMint's bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $520/t CFR Manila, stable w-o-w.
  
  
• Vietnam's billet export offers drop: Vietnam's BF-grade billet export offers moved down by around $10/t w-o-w to $490/t FOB.
  
  
• Thailand's imported billet prices inch down: Imported billet prices into Thailand inched down by around $5-10/t w-o-w to $530-535/t CFR.
  
  
• Chinese billet prices fall: Billet prices in China's Tangshan fell w-o-w by RMB 70/t ($10/t) to RMB 3,400/t ($489/t), including 13% VAT, on 12 May. Weak demand, volatility in rebar futures, falling finished steel and raw material prices weighed on billet prices.