Weekly: Global billet market overview

The global billet prices gained stability this week amid bid-offer spread due to swinging Chinese rebar futures. Despite the disparity, sizeable billet volumes traded in the China and SE Asian destinations. However, Indian billet export offers have increased sharply, after a state-owned Indian mill concluded a billet export tender towards the end of the last week.

CIS-The offers from the region remain unchanged for this as well at $398/t, FoB. This week, sizeable billet volumes booked for China and Thailand from Russia.

India- This week, SteelMint assessment for Indian billet export offers (150*150mm) has moved up sharply and is currently at $420/t, FoB India. The prices have increased to over six-month high levels as these levels were seen in Feb’20.

• The Indian billet export prices hiked in a recent export booking. A state-owned mill of India has concluded the 30,000 t (150*150mm, 3SP/4SP) bloom export tender floated for spot sale on 20 Aug’20, against 100% advance payment terms. According to SteelMint sources, the company managed to achieve a price level of around $415/t, FoB for end-Sep shipment with some SE Asian nation to be the likely destination.
• Private primary mills held their export offerings for this week as well- It was the third consecutive week when no firm export offers witnessed from the Indian primary private mills amid limited export allocation. These mills, along with some state-owned mills, have seen focusing on the domestic market, which witnessed a sharp fall during the week after the raw material prices obtained stability. The rising raw material prices were also contributing to the hiking of domestic billet prices.
• On the other hand, a few private secondary mills were seen active in the global market with SE Asian countries to be the likely destination.
• Chinese bids remain for Indian billets remain unchanged on fluctuating rebar futures-Chinese rebar futures have seen swinging for the past couple of weeks, and for this reason, the Chinese bids remained identical, during the period. The Chinese rebar futures saw a drop of RMB 8 against yesterday and settled at RMB 3,773/t, down by RMB 75 ($11), against last week. The Chinese buyers have heard bidding at a level of $425-430/t, CFR, stable against last week.

Iran- This week SteelMint assessed billet export offers from Iran to be at $400-405/t, FoB Iran, unchanged against last week.

• It was the third consecutive week when billet export offers remained unchanged. Although, towards the end of the last week, KSC has concluded an export deal at a $406/t, FoB level. However, the other prominent mills of the country, seen offering in the range of $400-405/t, on FoB Iran basis.
• The bid-offer spread continues its existence-The price stability of the Iranian billets could not pull the bids from the Chinese and SE Asian buyers amid fluctuating Chinese rebar futures. The bids remained unchanged for this week as well and were at $420-425/t, CFR levels.
• ESCO concludes 30,000 t billet export tender- Esfahan Steel Company (ESCO), one of the leading steel exporters of Iran, has booked 30,000 t billets through a tender for Ghana, Africa. According to company officials, the company managed to achieve a price level of $401/t, FoB Iran. The shipment is likely to be scheduled for Nov’20.
• Chadormalu floats 30,000 t billet export tender-Chadormalu Mining and Industrial Company, one of Iran’s leading steel exporter, is offering 30,000 t billets through a tender for Sep’20 shipments. In previously floated tender, the company managed to achieve a price level of $398/t, FoB Iran. The billet export offers from Iran are stable against last week and are at $400-405/t, FoB Iran levels.
• Domestic billet prices at IME witness a rebound- The domestic billet prices in Iran saw a decent comeback on improving demand, after declining for the past couple of weeks. This week, approximately 91,200 t billets traded at the Iranian Mercantile Exchange (IME), at an average price of IRR 77,453 ($383/t), up by IRR 3,685/kg ($19), against last week. Yesterday, the spot billet prices were at IRR 85,000 t ($420/t), ex-works, including 9% VAT.

SE Asia- SteelMint assessment for billet import offers in SE Asia have moved up marginally and is currently at $435-440/t, CFR, up by $5 against last week.

• The SE Asian billet import market saw lean volume trades, as bid-offer spread continued staying for this week as well. Bids remained stable at $420-425/t, CFR, and offers are ranging between $435-440/t, CFR levels. The regional offers have also reached a $435/t, CFR level. The disparity was primarily due to the fluctuating Chinese rebar futures.
• This week, Thailand booked around 20,000 t billets from Russia at a price level of $434/t, CFR.
• In another deal concluded early this week, nearly 10,000 t of Indonesian billets were booked at around $440-445/t CFR China.
• During the end of the last week, India’s state-owned primary mill has booked 30,000 t blooms (150*150 mm) through a tender at a price level of $415/t, FoB India. According to SteelMint sources, the shipment is likely to ship for a SE Asian destination.
• The Philippines buyers seem interested in increasing their buying bid- During a conversation with a trader, SteelMint learned that one of the leading mills of the country shown an interest in initiating a discussion for IF grade at $435/t, CFR levels. However, it was just a primary level inquiry, he added.
• Vietnam-This week, the billet offerings from the country have increased marginally and are currently at $435/t, FoB, up by $5 against last week.

China- This week, Chinese domestic billet prices remained identical to last week’s closing. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,400/t ($495/t) in Tangshan, inclusive of 13 % VAT. The bids for imported billet in China were between $420-430/t, CFR, for non-ASEAN billets, unchanged against last week.

Global billet market snapshot-