Square Billet Price Trends in May
In May 2025, square billet prices experienced a slight decline of $10 per ton. This decline was attributed mainly to weak export demand. Although some regional markets saw minor price adjustments mid-month, the prices ultimately returned to the levels seen at the beginning of May. Despite the minor fluctuation, the overall market remained relatively stable throughout the month.
In the Black Sea market, square billet prices remained mostly steady. The price range for Black Sea FOB (Free on Board) billets fluctuated between $433 and $437 per ton in May. These prices are particularly attractive for Turkish buyers, as domestic billet prices in Turkey are significantly higher. For example, Turkey’s Kardemir plant sells billets at prices between $500 and $510 per ton. Meanwhile, Chinese billet offers stand at $460-465 per ton CFR (Cost and Freight).
Turkish Market Focuses on Imported Billets
Turkish rolling mills have been particularly focused on importing billets due to the higher cost of domestic production. While the Turkish market had a relatively stable price environment in May, the imported billets continue to offer competitive advantages. The lower price of billets from China and the Black Sea region further incentivize Turkish buyers. Consequently, they opt to purchase internationally rather than relying on domestic production.
In contrast, local producers in China have been reluctant to sell billets. They have focused instead on producing finished rolled products. As a result, billet prices in Tangshan, China, saw limited fluctuation, with prices ranging from $405 to $407 per ton in early and late May. However, a brief mid-month price increase to $411 per ton indicates that some market participants are looking to capitalize on limited availability.
Regional Variations in Square Billet Pricing
The square billet market in Saudi Arabia saw a noticeable decrease in May. Prices fell from $523 per ton at the end of April to $501 per ton by the end of May. The decline is likely due to a weaker trading environment, with traders bracing for the upcoming Eid al-Adha holiday from June 6 to 10. This holiday traditionally slows down trading activities.
Meanwhile, in Italy, the highest price for square billets was observed at $557 per ton. However, this marked a slight drop of $4 per ton compared to earlier in May. Italy’s steel production costs have been negatively impacted by high electricity prices, which are contributing to the overall price trend.
SuperMetalPrice Commentary:
The slight downward trend in square billet prices in May reflects global challenges. These include weak export demand and relatively stable domestic market conditions. Turkish buyers, in particular, have benefitted from the relatively lower costs of imported billets. These imports are more competitive than domestic offerings. Looking forward, the market may remain volatile, especially considering ongoing global production challenges and regional holiday periods.
As we approach the mid-year, it’s important to monitor any significant changes in trade flows and production costs. These changes could affect the pricing structure of square billets. The ongoing fluctuations in regional markets could present both opportunities and challenges for producers and buyers alike.
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