This week, the global billet market reported having witnessed sizeable trades with increased prices, amid increased global scrap prices and continuous rising Chinese rebar futures. The bookings are predominantly for the SE Asian and Chinese destinations from Iran and Russia. However, due to increased global scrap prices and continuous rising Chinese rebar futures, we also saw a high bid-offer disparity, especially for the Indian billets.
In the past one week, the imported scrap prices in Turkey jumped by $30 to reach $333/t CFR as of 21 Nov’20. It has likely increased global billet prices. The price hike also was strongly backed by continuous rising Chinese SHFE rebar futures, which reported an increase of RMB 137($21) this week and yesterday settled at RMB 3,977/t ($605/t).
CIS- This week, Russia reported to have booked a sizeable volume for a SE Asian destination at $475-480/t, CFR. The billet export offers from the region saw a jump of $12-15/t and are at $440/t, FoB Black Sea.
India- SteelMint assessed Indian billet export offers (150*150mm, 3SP BF route, FoB east coast) to be at $440/t, up by $5-10 against last week.
- Indian billet export market remained silent for the second consecutive week on the high bid-offer spread. However, for this week as well, we saw limited offerings.
During a conversation with SteelMint, a trade source mentioned- “the export offers from primary mills are limited and immensely high, seems they (mills) are unwillingly offering for the exports amid better price realizations in the domestic market. A primary private mill heard having offered at above $500/t, CFR for a Chinese destination.” - Higher realizations in the domestic market have continued to keep mills away from booking export orders. Yesterday, SteelMint’s domestic billet (IF grade) index Exw-Raipur settled at INR 35,300/t ($476/t) as of 20 Nov’20, up by INR 1,200 ($16) w-o-w.
Iran- SteelMint assessed Iranian billet export offers to be at $430-435/t, FoB Iran, up by $12-15 against last week.
- KSC concludes 30,000 t billet export tender: Khouzestan Steel Company (KSC), the leading steel exporter of Iran, reported having booked 30,000 t billets through a tender at $435-440/t, FoB Iran. The shipment is scheduled for Dec’20, with China, SE Asia, and the Persian Gulf to be likely destinations.
- ESCO books 40,000 t billets for SE Asia and MENA: Esfahan Steel Company (ESCO), one of the leading steel producers of Iran, has booked 40,000 t billets for SE Asian (20,000 t) and MENA (20,000 t) destinations. According to SteelMint sources, the company achieved a price level of $430/t, FoB Iran. The shipment is likely to be scheduled for end-Jan’21. During (20 Mar-20 Apr’20), ESCO exported 0.55 mn t of steel.
- We have also heard Sirjan Iranian Steel Company booking sizeable volumes for Chinese and a SE Asian destination 427/t, on anFoB Iran basis. However, we could not confirm the quantity until the publishing time of this report.
- Domestic billet prices at IME drop by IRR 4,394/kg ($17): This week, amid sluggish demand, Iranian domestic billet prices saw a fall of IRR 4,394/kg ($17) in a recent trade event hosted by the Iranian Mercantile Exchange (IME). According to SteelMint sources, approximately 46,250 t billets traded at an average price of IRR 93,395/kg ($369/t).
SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $475-480/t, up by $5-10 against last week.
- This week, the SE Asian billet import market reported having booked sizeable billet volumes, with Iran and Russia being the predominant supplier. The deals concluded are at increased price levels. However, due to increased global scrap prices and continuous rising Chinese rebar futures, we saw a high bid-offer disparity. The offers have crossed $480/t, CFR, while the bids have seen hovering at $465-470/t, CFR levels.
- Vietnam– We heard a couple of deals from the country of over 20,000 t for China in the $480-495/t CFR. The current billet export offers from the country are at $490/t, FoB Vietnam.
- Thailand– Billet import offers in the country seen at $485/t, CFR, up by 12-15/t w-o-w
Chinese domestic billet price up by RMB 40 ($6) w-o-w-This week, the billet prices in the Tangshan market (northeast China) settled with a rise of RMB 40, against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,620/t ($551/t) in Tangshan, inclusive of 13 % VAT. The billet transactions were moderate, and finished steel prices are in synergy with billets.
Global billet market snapshot-
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