Will Dull Domestic Demand in South Korea Lead to Increased Billet Exports ?

Amid delayed recovery of peak season in South Korea's domestic steel market in and falling export volumes from China has given an opportunity to South Korean mills to cater to overseas market.

Domestic rebar market in South Korea has witnessed significant change and continues to face sluggish demand, high inventories and uncertainty in demand recovery.

On the other side, overseas buyers also seem interested for other alternatives over high prices of Chinese billets amid limited volumes for export.

Thus dull domestic demand and improved buying interest from overseas buyers seem to at attract South Korean mills.

Couple of weeks ago, major mills in South Korea like Hyundai Steel etc have become active in quoting export offers for rebar and billet to South East Asian nations like Phillipines etc. Few billet export offers were heard around USD 555-560/MT, CFR Phillipines.

In a recent offer heard a South Korean steel mill was heard to have made contract for about 15,000 MT billets to Chile at USD 545/MT, FoB. It would be interesting to see whether South Korea will resume billet exports in a big way as this may impact Japan which exports around 1-2 MnT billets annually to South Korea.

Global billet export offers edge up following increase in scrap prices

Following increase in global scrap prices last week, billet export offers have also moved up. Imported scrap prices in Turkey have moved up further. Assessment for US origin HMS (80:20) is around USD 345-350/MT, CFR.

CIS billet export offers are assessed at USD 500-505/MT, FoB Black Sea, up by USD 5/MT W-o-W.

No active export offers from China were heard amid high domestic prices and low inventories. However assessment stands at USD 540/MT, FoB China.

Domestic billet prices in China edged up to RMB 3,740/MT (incld 17% VAT) for Q235 billet in Tangshan by week close against RMB 3,710/MT in week's beginning.

~Inputs from Iru Miru