Steel billet prices dropped in almost all markets last week, affected by falling finished steel prices in China and continued weak buying activity due to the Islamic holy month of Ramadan.

China
The Chinese billet market weakened last week, motivated by lower costs of raw materials, weaker demand for finished steel and losses in the rebar futures markets early in the week, according to sources.

An increase in billet inventories also added pressure to prices, along with the approaching wet season.
Prices fell significantly last weekend and at the beginning of the week, reaching 2,950 yuan ($434) per tonne on Tuesday June 6.
By the end of last week, the billet price had partially recovered to 2,990 yuan ($440) per tonne, as the paper market became stronger.

Southeast Asia
In Southeast Asia, buyers were again interested in material from China, after about three weeks out of the market, as reduced prices in the country encouraged trading.
A booking in the Philippines was reported at $420 per tonne cfr Manila early in the week, while offers to Indonesia were heard at as low as $415 per tonne cfr.

“Prices from China suddenly started to drop,” one buyer in Southeast Asia told Metal Bulletin on Tuesday.
Traders were again heard short selling Chinese material in the region, adding more downward pressure to prices.
By the end of the week, traders were offering 150mm grade Q235 billet from China at close to $410 per tonne cfr in Indonesia, slightly lower than at the beginning of last week.
“There are indeed offers at $410-415 [per tonne cfr], but people are hesitant to book,” one Jakarta-based market participant said on Friday.
In Indonesia, the market remained weak due to the Ramadan, and buyers were also waiting to see whether Chinese prices would drop any further.

In the Philippines, offers for 120-130mm Chinese grade Q275 material were around $420 per tonne cfr Manila late last week, but no deals were heard.
Sources also heard offers of Russian 130-150mm  5sp grade billet at $425 per tonne cfr Manila – equivalent to Q275. However, market participants said a deal was unlikely due to the large number of offers for Chinese material at lower prices.

Iran, Mena
Billet offers from Iran to the UAE were at $410-415 per tonne cfr last week, but no deals were heard. The material was last booked about two weeks ago at $400-405 per tonne cfr.

source: metalbulletin News