Weekly round-up: Global billets market remains weak amid limited trading

The global billets market witnessed dull sentiments throughout the week due to bid-offer disparities and the absence of firm buying interest which resulted in limited deals.

Market highlights

• Iran's steel billet export market silent: Iran's billets export market remained silent this week with prices falling slightly w-o-w. Limited deals dragged down billet export prices, SteelMint notes. Also, economic activities in Iran are getting hampered due to political negotiations called the Joint Comprehensive Plan of Action (JCPOA). Meanwhile, Sirjan Jahan Steel Company (SJSCO) floated an export tender for 30,000 t of steel billets with the due date being 30 August. The shipment is likely to be scheduled for October. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $456/t FOB on 26 August, a marginal decrease of around $5/t, w-o-w.
  
  
• SE Asia billet import market inactive: South East Asia's imported billets market sentiments weakened this week on low buying interest. The weakness stems from the subdued finished steel market in the region and bid-offer disparities, SteelMint understands. SteelMint's bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $535/tonne (t) CFR Manila, a marginal decrease of $2/t w-o-w. Offers for Indonesia-origin BF route billets are at around $555/t CFR Manila. However, bids are yet to improve.
  
  
• Vietnam's billet export offers inch up: Vietnam's BF-grade billet export offers stood at around $530-540/t FOB, up by $10-20/t w-o-w. According to market sources, trade activities were mostly absent throughout the week and demand for semi-finished was also subdued. However, a hike in scrap prices pushed up billet offers. Meanwhile, some industry participants found domestic prices, ruling at around $550/t exw, more attractive.
  
  
• China's billet prices rise towards weekend: Steel billet prices in China's Tangshan rose by RMB 110/t ($16/t) w-o-w following a sharp hike in rebar futures. Prices stood at RMB 3,770/t ($549/t), including 13% VAT, on 26 August, 2022. According to data maintained with SteelMint, China's SHFE rebar futures contract for October 2022 delivery closed at RMB 4,097/t ($596/t) on 26 August, a sharp increase of RMB 168/t ($24/t) w-o-w.
  
  
• China's imported billets market subdued: SteelMint's bi-weekly assessment for billet import prices currently stands at $505/t CFR, a marginal increase of around $2/t, w-o-w. Preference for domestic billets and weak end-user demand has weighed on prices, SteelMint notes.