Weekly: Global billet market overview

This global billet market witnessed limited trades, on falling global scrap prices and fluctuating Chinese rebar futures. The offers across all regions saw a drop, except for India. However, no bookings have been seen from India. A high bid-offer spread witnessed due to Chinese holidays.

CIS-Billet export offers from the region are standing at $405/t, FoB, Black Sea, down by $5-8, against last week.

India-SteelMint assessment for Indian billet export offers (150*150mm) is at $430/t, FoB India, unchanged against last week.

• This week, the Indian billet export market remained silent.
• On the falling domestic billet market, the Chinese bids for Indian billets were reported at $415-420/t, CFR, down by $5 against last week. On the other hand, the SE Asian bids destination has seen at $425-430/t, CFR. While indicative offers from India heard at $430/t, FoB
• However, a state-owned mill canceled 20,000 t billet export tender amid higher bid-offer spread. According to SteelMint sources, tender fetched the highest bid at around $430/t FoB for 65mm and $427/t FoB for 90mm sized billets. The mill was expecting the price level of $440/, FoB India.
• Although towards mid of the last week, the company had floated two export tenders for 60,000 t blooms (30,000 t each) for mid-Nov’20 shipments, which are under negotiations. Among the two, one if floated against 100% advance payment terms for 3SP/4SP grade, while the payment terms for the other are payable at sight LC for 5SP grade. The due date for both the tender was 1 Oct’20.

Iran- SteelMint assessed billet export offers from Iran to be at $405-410/t, FoB, down by $5 against last week.

• The billet export offers from Iran saw a marginal dip this week.
• During the conversation with SteelMint, the Planner’s executive said, “the market is dizzy. However, mills still want to achieve higher price levels, but buyers are aware of the drop and hesitate to buy anything. It’s a matter of time. It would be interesting to see who breaks first.”
• ESCO floats 20,000 t billet export tender- Esfahan Steel Company, one of Iran’s leading steel exporter, has floated an export tender for 20,000 t billets. The shipment is likely to be scheduled by Dec’20. The company is expecting a price level of $410/t, FoB Iran. According to the company official, the tender is likely to be concluded in the coming Iranian week.
• Domestic billet prices at IME witness marginal fall- The domestic billet prices have witnessed a marginal drop of IRR 832/kg in a recent trade event hosted by the Iranian Mercantile Exchange (IME). However, the offered quantity saw a w-o-w increase of 25,800 t. According to SteelMint sources, On 29 Sep’20, approximately 109,700 t billets traded at an average price of IRR 99,144/kg ($407/t).

SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $440-445/t, CFR, down by $5 against last week.

• SE Asian billet import market witnessed limited trades amid bid-offer disparity due to Chinese holidays and falling global scrap prices. The offers in the region were at $445/t, CFR levels, while buyers have seen bidding at $435/t, CFR levels.
• Vietnam- This week, the billet offerings from the country witnessed a sharp drop of $25 and are standing at $425/t, FoB.

China- Chinese domestic billet prices, before holidays, settled with a drop of RMB 20, against last week’s closing. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,300/t ($485/t) in Tangshan, inclusive of 13 % VAT. The bids for imported billet in China were ranging from $415-420/t, CFR, for non-ASEAN billets.

Global billet market trade snapshot-