Weekly round-up: Global billets offers increase in recent trade

Global billets prices rose this week on the back of a sharp recovery in global scrap prices. However, the Indian billets export market has remained less active in absence of deals and higher domestic realisations. Also, billets export offers from CIS also strengthened by $20-25/t w-o-w.

Highlights -

• Iran's billets export market awaits tender outcome: Iran's steel billet exports market remained silent this week, awaiting the outcomes of the tenders floated recently. Esfahan Steel Company (ESCO) floated an export tender for 30,000 t of steel billets. Iran's steel billets export prices are expected to remain supported in the near term because of the sharp rise in global scrap prices. Moreover, traders are likely to get better clarity on Iranian semi-finished steel export prices after the tender results are out. However, reduction in gas supply amid cold weather in the region may result in a marginal drop in steel production levels.
  
  
• Philippines billets import offers up: Imported billets prices into the Phillipines increased to around $540-545/t CFR. A few active deals were heard by Indonesia-based mills that sold some cargoes to traders at $505/t FOB. A Malaysian company sold 15,000 t of billets at $530/t CFR.
  
  
• Vietnam's billets export offers inch up: Vietnam's BF-grade billet export offers increased by around $5/t as against last week. Offers stood at around $520/t FOB. However, no active deals were heard at these offers.
  
  
• Thailand's imported billets prices rise: Imported billets offers into Thailand stood at around $530-535/t CFR, up by $20-25/t w-o-w. Also, offers from Iran were stable at $485-490/t CFR w-o-w. As per sources, Iran sold some material to Indonesia at $495/t CFR.
  
  
• China's billets prices up marginally up w-o-w: Steel billets prices in China's Tangshan rose by RMB 170/t ($24/t) w-o-w. Prices stood at RMB 3,720/t ($535/t), including 13% VAT, on 9 Dec'22. The stability in finished steel prices and a significant rise in futures supported domestic billets prices. According to data maintained with SteelMint, China's SHFE rebar futures contract for January 2023 delivery closed at RMB 3,770/t ($542/t) on 9 December, up RMB 30/t ($4/t) w-o-w.