Weekly round-up: Global billet prices fall on lower bids, limited trades

• US-origin deal supports Turkiye scrap offers
  
  
• Seasonal slowdown impacts trade in Asia
  
  

The global billet market remains muted, with limited trading activity and weak downstream demand, particularly from the rebar segment. Misaligned price expectations between buyers and sellers have stalled deals. A bearish outlook in Asia, and seasonal construction slowdowns continue to weigh on sentiment. While prices are stable in some regions, tight supply in others added complexity to global markets. Overall, the market remained cautious, mirroring the subdued tone of the broader steel sector.

Turkish deep-sea imported scrap prices held steady at $347/t CFR w-o-w, supported by a recent US-origin deal that reaffirmed prevailing levels. Price ideas from both buyers and sellers remained firm, resulting in subdued trading activity. Sellers resisted downward pressure, anticipating that mills would return to the market for restocking in the near term.US-origin HMS 80:20 bulk scrap stood at $347/t CFR Turkiye, stable w-o-w.

The Asian steel market remained subdued amid weak demand and a bearish outlook, especially in China. Rebar demand continued to soften, with downstream construction slowing ahead of the seasonal lull. While East Asia and Southeast Asia saw relatively stable billet prices and firm export activity, South Asia and parts of Southeast Asia faced tight supply and sluggish buying trends. Market activity in China is expected to stay quiet in the near term, with an upcoming public holiday on Monday further dampening trading sentiment. Above all, regional mills remain conservative, focusing on margin preservation amid limited demand triggers.

Market highlights

• Vietnam's steel market sentiments remained weak amid seasonal slowdown, uncertainty over anti-dumping measures, and limited BF-route billet export offers. Domestic supply is tight due to reduced output and ongoing production cuts, with exports unlikely to resume before July, reinforcing the subdued near-term outlook.
  
  
• In the Philippines market, billet offers for CFR Manila declined by $10/t w-o-w to $440/t, CFR as of 30 May. Market activity was limited as buyers remained on the sidelines, with no further deals reported after the transactions with SteelAsia in the previoius week, sources informed BigMint. Futures remained on a downtrend throughout the week, further weighing on sentiments. Meanwhile, the Russian Billet Index, FOB Black Sea, remained stable at $428/t w-o-w.
  
  
• Iran's semi-finished steel export market remained quiet this week. Billet offers for 130x130 mm 3sp, FOB Bandar Imam Khomeini, were unchanged w-o-w at $420/t. Meanwhile, domestic prices surged due to a supply crunch caused by severe power outages and liquidity challenges.
  
  
• Chinese billet prices dipped by RMB 60/t ($9/t) w-o-w amid market weakness. Steel billet prices in Tangshan, China, declined notably by RMB 60/t ($9/t) w-o-w to RMB 2,890/t ($401/t), including 13% VAT, on 30 May compared to 23 May. The market saw a significant downturn in billet prices, erasing the slight gains made in previous weeks, due to lacklustre demand, easing raw material costs, and high production levels. Meanwhile, SHFE rebar futures also fell by RMB 85/t ($12/t) w-o-w, reaching RMB 2,961/t ($411/t).