Weekly round-up: Rising global scrap prices keep billet offers supported

The global billet market saw dull buying interest resulting in limited deals this week. However, global scrap price recovery, with Turkiye's imported scrap prices rose by around $12/t w-o-w. It has been supportive for billet prices.

Market highlights

• Indian mills eye higher billet prices: Some Indian mills have become slightly active in the export market. As per market sources, Indian mills' expectations for recent billet export tenders are at around $600-620/t FOB.
  
  
• Iranian billet export prices edge up w-o-w: Iran's steel billet export market remained silent this week. Low buying interest from key importing nations, limited trade, and the harsh winter in the region held back trade activities in the export market. An Iranian steel mill has recently concluded an export deal for 80,000 t of slabs at around $533/t FOB, sources informed SteelMint. However, the hike in scrap offers has kept export prices supported. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $545/t FOB on 3 February, up by $2/t w-o-w.
  
  
• South East Asia's imported billet market silent: South East Asia's imported billet market remained quiet on low buying interest post-Tet holidays as market participants are yet to return. Also, sluggish finished steel demand in the region weighed on the import market, SteelMint noted. However, prices of imported billet remained supported this week. SteelMint's bi-weekly assessment of billet (150x150mm, 3SP) imported by Philippines currently stands at around $600/t CFR Manila, an increase of $10/t, w-o-w.
  
  
• Vietnam's export offers resume: Vietnam's BF-grade billet export offers resumed at higher levels post-holidays followed by a hike in the country's scrap offers. Current offers are at around $610/t FOB. However, no active deals have been reported so far on current offers.
  
  
• Thailand's imported billet prices unchanged: Imported billet prices in the country are hovering at around $620-640/t CFR.
  
  
• China's domestic billet prices edge down post-holidays: Steel billet prices in China's Tangshan inched down by RMB 10/t ($1/t) to RMB 3,810/t ($562/t), including 13% VAT, on 3 February. A decline in futures over the week has pulled down billet prices. According to data maintained with SteelMint, China's SHFE rebar futures contract for May 2023 delivery closed at RMB 4,055/t ($598/t) on 3 February, a sharp decrease of RMB 124/t ($18/t) as against the closing on 20 January, 2023.