Weekly round-up: Rising global scrap prices support billets offers, trade subdued

The global billets market saw dull buying interest, resulting in limited deals last week. However, a sharp recovery in global scrap prices pushed up billets offers. Turkiye's imported scrap trade improved and offers moved up by over $25/t w-o-w.

Market highlights

• Indian billets export tenders remain inconclusive: The recent billets export tenders floated by the Indian primary mills received weak response and remained inconclusive. Indian mills were expecting price levels at around $505-510/t FOB. However, firm bids remained absent due to lower price levels in importing nations at around $505-515/t CFR Manila. With the recent recovery in global scrap prices, global billets prices may firm up in the near term.
  
  
• Iranian billets market sees limited trading: Iran's billets export market witnessed limited trading with prices remaining stable w-o-w. Falling global scrap prices, weak demand and the bid-offer disparities continued to weigh on billets exports, SteelMint notes. Meanwhile, an Iranian mill concluded an export deal for 40,000 t of steel billets at around $455/t FOB for December shipment. SteelMint's latest assessment of Iran's billets (3SP) export prices stood at $455/t FOB on 2 December, down around $3/t w-o-w.
  
  
• SE Asia's imported billets offers rise w-o-w: Imported billets prices in South East Asia edged higher this week, although demand still remains low. However, market participants adopted a wait-and-watch approach owing to weak finished steel sentiments in the region which kept trade at bay. SteelMint's bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at $515/tonne (t) CFR Manila, up by $5/t, w-o-w.
  
  
• Vietnam's billets export offers up: Vietnam's BF-grade billets export offers increased by around $20/t as against 18 November. Current offers are at around $500/t FOB. However, no active deals were reported so far at current offers.
  
  
• Thailand's imported billets prices edge up: Imported billet offers stood at around $510/t CFR, up by $5/t w-o-w, as per sources. Also, offers from Iran were heard at comparatively lower levels of $485/t CFR.
  
  
• China's billets prices up marginally w-o-w: Steel billets prices in China's Tangshan decreased by RMB 10/t ($1/t) w-o-w. Prices stood at RMB 3,550/t ($505/t), including 13% VAT, on 2 December. 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 3,808/t ($542/t) on 2 December, a rise of RMB 72/t ($10/t) w-o-w.