Weekly: Global Billet Market Overview

The global billet market turned active this week, post-labor holidays. Numerous deals were reported in SE Asia and China from Russia, India, and Iran. If sources to be believed, the billet trades crossed 100,000 MT mark, during the week.

Iran- An Iranian mill was reported to book approximately 20,000 MT billets to China recently. The value of the deal was noted to be between USD 345-350/MT, FoB Iran for 130*130mm size. However, soon after this deal, the billet export offers from the country witnessed a marginal fall. SteelMint assessment for billet export offers from Iran is at USD 340-345/MT, FoB Iran, down USD 5 against last week.

— While on the contrary, the domestic billet prices in Iran were noted to have an increase. According to reliable trade sources reported to SteelMint, approximately 83,000 MT billets were traded at IME during the week with an approximate average of IRR 47,985/kg, up IRR 2000/kg (approx.) against last week.

India- Indian billet export market continues to observe deals from Indian mills. Soon after the Chinese market resumed; post-labor-holidays, an Indian private mill managed to book a decent quantity to China. According to trade sources reported to SteelMint, the mill booked approximately 30,000 MT billets and the deal value was noted to be around USD 375/MT, CFR. The shipment is scheduled for Jun’20.

— Earlier this week, another Indian mill was reported to conclude 30,000 MT spot billet (3SP/4SP) export tender at USD 350/MT, on a FoB basis on a 100% advance payment basis.

— Rashtriya Ispat Nigam Limited (RINL), the state-owned steel maker under the Ministry of Steel, has invited an e-tender for the export of 60,000 MT Blooms, of 150*150mm size, and 3SP/4SP grade. The last date for bid submission is 14 May’20 and the shipment is scheduled for 15 Jun’20.

CIS- The billet import offers from the region were witnessed stable and are currently at USD 340/MT FoB, identical as last week.

SE Asia- SteelMint assessment for billet import offers in the SE Asian region is at USD 365-375/MT CFR, up USD 5 against last week.

— This week, numerous deals were heard to have happened in the SE Asian region. If sources are to be believed, approximately 100,000 MT billets were booked to SE Asia from Iran and India this week. The bookings were largely made from Thailand and the Philippines with an average price of USD 365-375/MT, CFR. Among these bookings, approximately 30,000 – 40,000 MT billets are having high manganese content, which is being booked by the Philippines, and rest are scheduled for Thailand, few reports show. However, SteelMint could not confirm all bookings until the publishing time of this report.

— SteelMint Analysis- The current billet import offers in SE Asia are at USD 365-375/MT, CFR levels. And as per few reports and sources, the Philippines has booked approximately 40,000 MT billets at USD 370-375/MT, CFR, sources also claim some bookings have been made from India too. Whereas high manganese content billets fetch a premium of up to USD 15-20/MT (approx.), depending upon the end-use, SteelMint learned during a conversation with industry experts and trade sources. According to SteelMint analysis, the price levels are not rationalizing with the facts.

— The billet export offers from Vietnam were reported to be at USD 382/MT, FoB.

China- The domestic billet prices in China are at RMB 3,140/MT ex Tangshan (including VAT), up RMB 70, against last week.

 Global billet price assessment:

Source: SteelMint Research