Weekly round-up: Global billet market subdued amidst thin trading

The global billet market witnessed dull sentiments throughout the week due to several factors like bid-offer disparities, absence of firm buying interest and drop in bids from key importing nations resulting in limited deals.

Market highlights

• Indian billet export market stagnant: The Indian blast furnace (BF)-grade billet export market saw stable offers as sellers shifted to the domestic market on better realisations compared to exports. Indian steel mills were facing difficulties in exporting owing to the huge gap between offers and bids following the current global meltdown. Exporters were not ready to sell at lower bids and prefer offering in the domestic market, sources informed.
  
  
• Iranian billet export prices fall further post-Eid holidays: Iranian billet export prices witnessed a significant drop in recently-concluded deals. Declining global scrap prices, low bids from key importing nations, limited trade and cheaper billet offers from Russia continued to drag down billet export prices, SteelMint notes. An Iranian mill concluded an export deal for 30,000 t of steel billets towards the end of last week. The deal was concluded at around $510/t FOB and the shipment is scheduled for mid-August. Another export tender for 30,000 t of steel billets was concluded recently at around $461/t FOB. Iran's billet export prices fell by around $60/t w-o-w. The price difference between the two deals was due to different destinations for GCC and SE Asia. Meanwhile, Khouzestan Steel Company (KSC) has floated 40,000 t each of steel billet and slab export tenders. The shipments are likely to be scheduled for September.
  
  
• SE Asian billet import market sluggish: South East Asia's imported billet market remained less active this week due to the gap between bids and offers. The weakening of buying sentiments amid subdued finished steel market in the region held back trade. SteelMint's bi-weekly assessment of BF-route billet (150x150mm, 3SP) imported by the Philippines currently stands at around $517/t CFR Manila, a significant fall of around $41/t, w-o-w. Meanwhile, offers for IF-route billets were heard at around $520/t CFR Manila.
  
  
• Vietnam's billet export offers fall w-o-w: Vietnam's BF-grade billet export offers stood at around $500/t FOB, a w-o-w fall of around $20/t due to weak demand in the domestic market.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country hovered at around $530-540/t CFR, a decrease of around $25/t w-o-w. Weak demand and falling finished long steel prices in the region due to the onset of the monsoon continued to weigh on billet import prices.
  
  
• China's billet prices rebound on recovery in futures: Steel billet prices in China's Tangshan witnessed a rise of RMB 150/t ($22/t) w-o-w following a significant recovery in rebar futures. Prices stood at RMB 3,550/t ($526/t), including 13% VAT, on 22 July. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 3,863/t ($572/t) on 22 July, witnessing a sharp hike of RMB 274/t ($40/t) w-o-w.