Billet Market Overview

The Russian domestic market remained firm, supported by seasonal construction activity and persistent supply shortages. Limited availability of rebar and structural steel products, coupled with delayed shipments from some mills, continued to push domestic prices higher. In contrast, Russia’s export billet market remained largely stable as of the first week of June, with offers holding at $485/t FOB Black Sea and around $510/t CFR Türkiye. Market participants estimate the current workable range for Russian billet at $500-505/t CFR Türkiye, although isolated transactions could reach $510/t CFR should scrap prices strengthen further and buyers seek prompt cargoes.

Chinese billet export sentiment softened despite mills maintaining relatively firm offer levels at $470-480/t FOB China. Market sources reported that recent transactions were concluded at lower price levels, reflecting ongoing pressure from subdued buying interest. Nevertheless, inquiries from South Asia and the Middle East remained relatively active. Rising freight and port costs continue to affect trade flows to North Africa, although the impact on overall market activity has so far remained limited. Domestic billet values in Tangshan were heard at CNY 3,070/t.

In Southeast Asia, the Philippine billet market remained relatively stable. Tradable levels for 3SP 150 mm billet were reported at $490/t CFR Manila, while offers stood at approximately $495/t CFR Manila. For higher-grade 5SP material, offers were heard around $500/t CFR Manila. 

The Iranian billet market continued to face significant headwinds. Export offers for July-shipment billet remained at $415-420/t FOB, but market participants indicated that achieving sales at these levels has become increasingly challenging. Escalating logistics costs, combined with security concerns affecting Gulf shipping routes, have reduced the competitiveness of Iranian material. On the supply side, electricity restrictions imposed by the government are causing production disruptions at some steel facilities, raising concerns about potential export volume reductions during the summer months. With buyers remaining cautious, the near-term outlook for Iranian billet exports remains weak.

Meanwhile, the Turkish billet market remained under downward pressure due to sluggish domestic demand. Kardemir reduced its billet prices on June 10, lowering the price of 150x150 mm S235JR billet by $5/t to $525/t and the price of B420 billet by $10/t to $530/t. Although relatively stable scrap prices continue to provide some cost support to producers, weak activity in the construction and long steel segments is limiting purchasing interest. Market participants believe that unless demand improves meaningfully in the coming weeks, Turkish billet prices are likely to remain under pressure despite stable raw material costs.