Weekly round-up: Global billet trades slow down even as Chinese steel futures plunge

The global billet market showed mixed trends this week on weak finished steel sentiments, limited trading activity and bid-offer disparities. However, a recovery in scrap prices may support global billet offers in the near term.

Market highlights

• Indian billet export market mute: The Indian blast furnace (BF)-grade billet export trades continued to remain inactive and kept buyers at bay. As prices of long steel (rebar and wire rods) in India's domestic markets increased substantially, producers were reluctant to sell at lower bids. Thus, a couple of Indian players remained out of the billet export market. Steel mills in India are not ready to sell at lower rates as they are getting a better realisation in the domestic market, sources informed. Indian primary mills have raised rebar offers by around INR 1,000/t for mid-July sales. Therefore, no billet export tender was heard this week.
  
  
• Iranian billet export prices remain supported: Iranian steel billet export prices remained supported in recently-concluded deals following the recovery in global scrap prices. An Iranian mill concluded an export deal for 20,000 t of steel billets, sources informed SteelMint. The deal was concluded at around $520/t FOB and the shipment is scheduled for 10 August. Meanwhile, another 20,000 t billet export deal was concluded at $520/t FOB for mid-August shipment. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $510/t FOB on 12 July, up $5/t w-o-w.
  
  
• SE Asian billet import market bearish: South East Asia's imported billet market sentiments continued to weaken on the back of low demand. The weakness stemmed from a subdued finished steel market in the region, further worsened by unpleasant weather conditions. SteelMint's bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines stands at $540/t CFR Manila, down $35/t w-o-w.
  
  
• Vietnam's billet export offers fall w-o-w: Vietnam's BF-grade billet export offers stood at around $520/t FOB, a w-o-w decline of around $15/t due to weak demand in the domestic market.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country are hovering around $560/t CFR, a decrease of around $10/t w-o-w. Weak demand and falling finished longs prices in the region due to the onset of monsoons continued to weigh on billet import prices.
  
  
• China's billet prices drop to 1.5-year low: Steel billet prices in China's Tangshan witnessed a sharp fall of RMB 520/t ($77/t) w-o-w following a decline in rebar futures. Prices stood at RMB 3,400/t ($503/t), including 13% VAT, on 15 July. Steel production curbs, weak domestic demand, drop in rebar futures and a subdued finished steel market in the region weighed on prices. According to data maintained with SteelMint, SHFE rebar futures contract for October 2022 delivery closed at RMB 3,589/t ($531/t) on 15 July, witnessing a sharp fall of RMB 607/t ($90/t) w-o-w.