Weekly round-up: Global billet market exhibits mixed sentiments

The global billet market saw mixed sentiments this week as importing countries witnessed a rise in offers amid improved sentiments in the Chinese market post-hike in futures. Meanwhile, the withdrawal of billet export offers from China also lent support to imported billet prices, SteelMint understands.

According to data maintained with SteelMint, China's SHFE rebar futures contract for January 2023 delivery closed at RMB 3,716/t ($522/t) on 18 November, a rise of RMB 79/t ($11/t) w-o-w.

However, prices are yet to improve in billet-exporting countries.

Market highlights

• Iranian billet export prices inch down in recent deals: Iran's billet export market remained largely silent this week with prices witnessing a decrease in the recently concluded deal. An Iranian mill concluded an export deal for 30,000 tonnes (t) of steel billets at around $456/t FOB. Prices have corrected downward by around $8/t as against the last concluded tender the previous week. Falling global scrap prices, weak demand and bid-offer disparities weighed on the billet export prices, SteelMint notes. However, power cuts in the coming days may keep offers supported in the near term. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $458/t FOB on 18 November, down $7/t w-o-w.
  
  
• Vietnam's billet export offers up w-o-w: Vietnam's BF-grade billet export offers increased by around $15/t w-o-w. Current offers stand at around $480/t FOB. However, no active deals have been reported so far at current offers.
  
  
• Thailand's imported billet prices edge down: Thailand's billet market witnessed low buying this week. Imported billet offers stood at around $500/t CFR, down by $5/t w-o-w, as per sources.
  
  
• SE Asia’s imported billet offers rise w-o-w: Imported billet prices in South East Asia edged higher this week. However, market participants adopted a wait-and-watch approach owing to weak finished steel sentiments in the region which kept trades at bay. SteelMint's bi-weekly assessment for billet (150x150mm, 3SP) imported by the Philippines currently stands at around $520/t CFR Manila, up by around $21/t, w-o-w.
  
  
• China's billet prices rise w-o-w amid positive market sentiments: Steel billet prices in China's Tangshan rose by RMB 60/t ($8/t) w-o-w. Prices stood at RMB 3,560/t ($500/t), including 13% VAT, on 18 November. Low inventories and hike in futures have supported domestic billet prices, SteelMint notes.
  
  
• Vizag Steel floats 30,000 t bloom export tender - State-owned Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% payment terms. The due date of the tender is 25 November and the delivery is scheduled for 31 December.