This week, SE Asian billet import offers reported to have surged by $15-20. However, we witnessed no bookings at increased prices levels. The price hike has been driven by the increased global scrap and continuously rising Chinese rebar futures.
The tight availability of ferrous scrap has led to consistent price hikes across the globe. The Turkish import prices have soared. It has led the subcontinent-based consumers to buy at prices that have hit their highest levels in over a year. The major scrap-generating countries are still battling the after-effects of the pandemic and production, and hence global supply has been tight.
Limited availability of the containers has also pulled up the scrap prices. It has consequently led the buyers to buy billets instead of scrap, resulting in increased demand for billets, and so as the global billet prices.
On the other hand, the Chinese rebar futures contract recorded an increase of $9 w-o-w and settled at $579/t on 13 Nov’20.
Imported billet offers in SE Asia have heard hovering at $465-475/t, CFR.
Deals & offers-
CIS- This week, the billet export offers from the region reported having witnessed a rise of $10 and are $425/t, FoB Black Sea. Russia noted to have booked a sizeable volume for China at $465-470/t, CFR. However, we could not confirm the quantity until the publishing time of this report.
India- Indian billet export offers reported a sharp hike this week. However, we saw limited mills offering in the global market. We heard Indian billets offered at $475-485/t CFR Philippines. SteelMint assessed Indian billet (150x150mm, BF-grade, fob East Coast) export prices at $430-435/t, up by $10-15/t week-on-week.
Iran- The export offers from the country saw a marginal rise this week and have seen at $420/t, FoB Iran. The offers from the country hiked after one of the leading exporters of the country, Chadormalu, booked a 30,000 t cargo for China at $420/t, FoB for mid-Dec’20 shipments. Also, a few mills are likely to line up the export tenders in the coming weeks.
Thailand- Billet import offers in the country seen at $470-475/t, CFR, up by 15-20/t w-o-w
This week, SteelMint assessment for billet import offers in SE Asia is at $465-470/t, up by $15-20 against last week.
Leave a Reply