Weekly round-up: Global billet prices exhibit mixed trends w-o-w
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- Investigations of non-VAT transactions in China, limited billet supply
- Iranian billet export tender concludes at lower price level amid tough political situation
Global billet prices showed a diverse trend this week. Notably, billet players remained cautious due to uncertain political situation arising in the exports market in Iran. Meanwhile, Southeast Asia (SE Asia) billet offers have increased due to tight supply from China. In addition, lack of billet export tender in the global market was witnessed except Iran.
Market highlights:
- SE Asia billet import offers rise w-o-w: SE Asia's imported billet offers are rising this week due to tight supply from China amidst ongoing investigations of non-VAT transactions. As per sources, billet import offers have risen by $17-18/t w-o-w to $530-535/tonnes (t) CFR Manila. In addition, Vietnam's billet export offers rose by $10/t w-o-w to $515-520/t FOB this week.
- Iranian billet export prices decline w-o-w: Iranian billet export market witnessed downtrend this week. Some Iranian mills have floated export tender last week, it has not concluded yet. Iranian mill, Sirjan Jahan Steel Complex (SJSCO), had concluded an export tender of 15,000 t of billets at $469-470/t FOB Iran for end-April delivery. However, some billet offers were heard at around $480-490/t FOB Iran too, sources informed BigMint. While, an export tender was concluded this week at the lower levels. Khouzestan Steel Complex (KSC) had floated an export tender of 30,000 t of billets and 50,000 t of slabs. The due date for the export tender was on 24 April. However, in the latest update received on the same, the company has extended the deadline till 28 April.
- Vietnam's billet export offers rise w-o-w: Vietnam's billet export offers increased by $12-13/t FOB to $515-520/t FOB this week.
- China's billet prices inch down by RMB 20/t ($3/t) w-o-w: Chinese billet prices edged down by RMB 20/t ($3/t) w-o-w to RMB 3,470/t ($489/t) on 26 April. Volatility in raw material, finished steel prices and increasing port inventories before Chinese Labour day holiday have weighed on billet prices. However, Chinese SHFE rebar futures increased by RMB 10/t ($1/t) w-o-w to RMB 3,685/t ($519/t) on 26 April.
