The global billet market remained subdued at the beginning of July as weak demand and cautious purchasing activity continued to weigh on trading. Although most suppliers kept their official offers unchanged, lower freight rates and limited buying interest continued to put pressure on export prices in several regions.
Russian billet export prices remained stable at $480/t FOB Black Sea, but market participants reported virtually no buying interest at this level. Turkish buyers continued to resist these prices, prompting some Russian producers to test lower offers at $470-475/t FOB in an effort to secure sales. Freight rates from Russian ports to Türkiye have fallen to around $25/t, making Russian billet more competitive on a CFR basis. However, this has not been enough to encourage Turkish buyers to return to the market.
Iranian billet export prices also remained unchanged at $415/t FOB, with trading activity staying limited and buyers continuing to adopt a cautious approach.
In Southeast Asia, Indonesia's Dexin reduced its billet export offers by $5/t to $470/t FOB as competition among exporters intensified and demand remained weak.
Chinese billet export prices edged lower, with FOB offers assessed at $462-464/t, down $1-2/t from the previous day due to fluctuations in the domestic market. Market participants reported declines in both domestic and overseas billet prices, while buyers continued to wait for further price decreases instead of placing orders. As a result, inquiries and transactions remained modest.
Lower freight costs also pushed Chinese 4SP billet offers to Türkiye down by $2/t to $518/t CFR. Despite the more competitive offers, Turkish buyers showed little interest as activity in the country's long steel market remained slow. Meanwhile, the domestic billet market was stable, with billet prices holding at $525/t EXW this week. Domestic rebar prices also remained unchanged during the first two trading days of the week, while trading activity continued at a sluggish pace.
Overall, the global billet market remains under pressure as buyers continue to postpone purchases in anticipation of lower prices. Although freight costs have declined and some exporters have adjusted their offers, weak downstream demand continues to limit trading activity.
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