Weekly round-up: Billet prices soften ahead of Ramadan in Middle East; Asia sees weak demand in key markets

• • Black Sea billet export activity remains thin

• • Asian billet prices stable, trades remain sporadic

Global billet prices softened in the week ended 6 February 2026, as demand remained uneven across key regions. Asian export billet prices were largely stable to slightly lower from mid-last week, while Black Sea export activity stayed thin, with sellers continuing to test higher offers amid rising production and logistics costs.

Meanwhile, deep-sea imported scrap prices in Turkiye were mostly stable but softened gradually as weak rebar demand and tight mill margins curbed buying. US offers were held at $380-385/t CFR, while EU material traded at $369-375/t CFR, with two to three major deals concluded. The scrap-rebar spread narrowed to $175-180/t, limiting price sustainability.

CIS and Black Sea market:

In the Black Sea market, billet export activity remained thin, though sellers tested higher offers amid rising production and logistics costs. Russian producers quoted $445-448/t FOB for March-April shipments, with some seeking $450-452/t FOB, versus $448-450/t FOB a week earlier. Turkish buying stayed limited near $438-440/t FOB, keeping the CIS billet assessment stable at $440/t FOB Black Sea. Deal activity offered limited support, indicating some restocking interest despite weak sentiment.

For Chinese-origin shipments to Turkiye, billet offers were quoted at $470-475/t CFR, but buyer interest remained subdued due to ongoing lira depreciation. Bids were heard closer to $455-460/t CFR, with the prevailing billet-scrap spread of $90-100/t continuing to guide procurement decisions.

Asian billet market:

Asian export billet prices slightly softened from mid last week, reflecting persistently weak demand across key markets. While some buying interest emerged in Trkiye, wide gaps between buyer and seller price expectations continued to restrain trading activity across Southeast Asia and Saudi Arabia.

Offers for Chinese 3sp billet held steady at $440-445/t FOB for April shipment, with bids heard around $435/t FOB. Market participants noted that mills were holding prices and showed little urgency to sell amid sluggish downstream demand in Southeast Asia and the Middle East.

Limited deal activity provided some support. A 50,000-tonne cargo of Chinese 4sp billet was sold to Turkiye at $475/t CFR for April shipment, according to market sources. However, broader Turkish buying remained cautious.

In the Philippines, China-origin 5sp billet was offered at $455-460/t CFR, slightly lower w-o-w, with counter-bids near $450/t CFR. Buyers reported only sporadic transactions, with one deal concluded at $455/t CFR, indicating weak but persistent demand. Southeast Asian buyers were bidding around $455/t CFR for open-origin 5sp billet, while offers hovered near $470/t CFR, down by $5/t over the week.

Meanwhile, Indonesia’s Dexin Steel maintained its April billet offers at $455/t FOB, despite limited interest, as the producer prioritised slab output amid stronger flat steel demand, particularly HRC exports to the EU ahead of quota adjustments.

Iran: Steel trade remains cautious amid ongoing geopolitical uncertainty, with buyers and sellers closely watching developments around potential US negotiations or further escalation. Iranian billet prices eased slightly to $395-400/t FOB, down from $400-408/t FOB last week, with some offers heard as low as $380-390/t FOB. Khouzestan Steel Company (KSC) tested higher levels, targeting $410/t FOB for 30,000-50,000 tonnes for mid-April shipment, though the price was considered high.

Smaller deals included a 130 mm billet to Iraq at $395/t FCA and a 2,000-tonne IF billet cargo to Djibouti at $392-395/t FOB. KSC also sold a higher-manganese billet lot at $405/t FOB.

In the slab segment, activity was firmer, with Mobarakeh Steel Company and KSC concluding April-shipment sales near $420-430/t FOB. Despite political risks, Iranian semis exporters are gradually re-engaging, seeking opportunities where demand allows.

Iraq: Rebar prices remained volatile as dinar depreciation pressured USD equivalents, widening the offer range. EAF-based mills quoted IQD 900,000-970,000/t ($600-645/t) exw, while billet-based producers held IQD 875,000/t ($583/t) exw. Basra offers softened to IQD 830,000-860,000/t ($553-573/t) exw, while induction furnace mills held $560-575/t exw, with discounts reported amid weak demand. Iranian and Turkish rebar remained available at $570/t and $800/t ex-warehouse, respectively.

Saudi Arabia: Improved sentiment in the finished steel and billet markets supported domestic scrap prices, which rose by SAR 60/t ($16/t) m-o-m, driven by higher rebar tags and tighter short-term availability. Scrap was assessed at SAR 1,460/t ($389/t) in Jeddah and Riyadh, while Dammam prices stood lower at SAR 1,400/t ($373/t). Market participants largely viewed the increase as a natural adjustment following stronger rebar pricing, though concerns are emerging over demand sustainability ahead of Ramadan.

In the semis segment, billet prices increased by SAR 40-50/t ($11-13/t) to SAR 1,900-2,000/t ($507-533/t) exw, with supply expected to tighten further due to a planned three-week maintenance shutdown at a domestic mill. Buyers have been seeking prompt volumes through traders, but procurement activity has slowed ahead of Ramadan. In the import market, Chinese 3sp billet offers were heard at $475/t CFR Jeddah, while buyers capped bids near $460/t CFR, reflecting cautious purchasing amid narrowing spreads between rebar, billet, and scrap.

Outlook: Chinese billet export activity is expected to slow sharply as market closures begin from 15 February, with no major transactions anticipated ahead of the shutdown. Inquiry levels from the Middle East remain subdued, with buying interest indicated around $460-465/t, largely confined to smaller parcels, while demand for 20,000-30,000-tonne cargoes stays weak. With most billet shipments scheduled for April loading and May arrival, compared with significantly faster scrap delivery timelines, Turkish mills are likely to tilt further toward scrap procurement in the near term, driven by shorter lead times and tighter working capital considerations.