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Global billet market strengthens on higher scrap prices

The global billet market has shown clear signs of recovery this week, driven by rising scrap prices, a more optimistic outlook in China, and improving sentiment across Asia and the Mediterranean. Market participants report gradually strengthening price indications in key importing regions, with some regions registering notable increases since early March.

Global billet market strengthens on higher scrap prices

Southeast Asia

In Southeast Asia, billet prices have been gaining momentum. In the Philippines, offers at local ports have climbed to $460–465/t CIF, reflecting a $5–7/t increase since the beginning of March. Market sources attribute this rise to improved demand and limited availability from exporters.

Indonesia has followed a similar trend, with producers raising their offers to $445/t CIF, up by around $5/t week-on-week. Although Chinese-origin billet remains priced at around $455–460/t CIF for late April and early May shipments, traders anticipate this level will become the market norm in the coming weeks.

Russia

Russian suppliers continue to play an active role in key import markets. Notable transactions were heard last week, including a 30,000 tonne billet sale to Türkiye at $455/t CFR, and another to Tunisia at $465–470/t CFR for 10,000 tonnes. Current offers for April shipment are largely stable at $445–450/t FOB Black Sea, though some sellers have floated nominal levels as high as $457/t FOB, particularly for small cargoes. Semis originating from the Donbas region are reportedly available at around $440/t FOB.

Despite limited supply volumes, sellers from Russia and Donbas are attempting to push for higher prices, around $440–450/t FOB, which would equate to approximately $470/t CFR Türkiye. However, Turkish buyers’ price ideas remain lower, around $450–455/t CFR ($430–435/t FOB), creating a mismatch in expectations.

Nevertheless, firming scrap prices and rising local billet levels may soon narrow this gap. Kardemir, a key Turkish producer, closed recent semis sales at $500–510/t EXW. With this backdrop, market sources believe Turkish buyers may eventually align with the $470/t CFR mark for CIS-origin billet.

Slab prices on the rise

Slab prices have also been on the rise across multiple origins. The leading Indonesian mill raised its slab offers to $465/t FOB, up by $30/t over the past month and by $20–25/t from earlier this week. Some market participants suggest that this increase follows a 50,000-tonne slab sale to Türkiye for April shipment, though this information remains unconfirmed.

Elsewhere, Southeast Asian slab offers to Europe have risen as well. Indonesian and Vietnamese material was last heard at $500/t CFR, up from $480–485/t CFR in mid-February. Chinese slab offers are even higher, exceeding $520/t CFR. In Türkiye, the workable level for Asian slabs, (excluding Malaysian duty-free slabs) has reached $475–478/t CFR, also up from around $465–470/t CFR a month ago. It’s been heard that deals at $470/t CFR were finalized approximately two weeks ago.

 

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