Global billet prices continue to trend upwards. However, for this week, we saw decently sized billet volumes traded at the increased price levels. The continuously rising global scrap prices are maintaining the momentum of global billet prices as well. For the third consecutive week, we saw a surge in the billet prices across the globe. However, in the meanwhile, Chinese rebar futures witnessed a dip but started reviving towards the weekend.
CIS- The billet export offers from the region have climbed to $575-580/t, FoB Black Sea levels, up by $5-10, against last week.
India- SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $550-555/t, up by $10-15, against last week.
- Indian mills continue enjoying better price realizations in the domestic market and continue posing limited interest for exports. We noted a rise in export offers. However, the offerings were indicative, and no trades were witnessed at the increased price levels.
Iran- SteelMint’s assessment for billet export offers from Iran has moved up by $25-30 w-o-w and is $520-525/t, FoB
- Iranian billet export prices are on a continuous surge. It was the third consecutive week when offers from the country saw a steep rise. The prices have surged by $20-25/t w-o-w in a recent deal. Since the first week of Dec ’20, Iran’s billet export prices have witnessed a spurt of around $50-55. Prices have hit over 2.5 years high as similar levels were last seen in Apr ’18, as per data maintained with SteelMint.
- Khouzestan Steel Company (KSC), Iran’s leading steel exporter, floated an export tender for 30,000 t billets. The company is expecting the price levels of $ 510-520/t, FoB.
- Chadormalu Mining and Industrial Company recently concluded a 30,000 t billet export tender. The company managed to achieve a price level of $527/t, FoB. The shipment schedule is for end-Jan ’21/early-Feb ’21 with the African nation as a likely destination.
- Domestic billet prices at IME surge by IRR 9,646/kg ($40/t): The domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a steep rise of IRR 9,646/kg ($40/t) amid rising demand. In a recent trade event hosted by IME, approximately 126,000 t billets reported having traded at an average price of IRR 107,514/kg ($423/t). The base price was IRR 97,402/kg ($384/t), and the offered quantity was 131,265 t.
SE Asia- This week, SteelMint assessment for billet import in SE Asia is $570/t CFR, up by $10 against last week.
- This week, SE Asian billet import market broadly remained silent on the continuously soaring global billet prices amid flying global scrap prices. Most southeast Asian mills are not keen to book billets at high prices for now, as they have the appetite to wait till Mid-Jan ’21, SteelMint learned from credible sources. And hence, we witnessed a wide bid-offer spread. The offers have crossed $580/t, CFR levels, while the bids hovering were at $560/t, CFR.
- However, in the meanwhile, the Philippines reported having booked a sizeable billet volume from Japan at $575-580/t CFR recently. However, we could not confirm the quantity until the publishing time of this report.
- Vietnam-The BF billet export offers from the country reported having increased by $10/t, w-o-w, and are currently at $570/t, FoB Vietnam levels.
- Thailand-Billet import offers are hovering at $550-560/t, CFR, up by $10 against last week. However, buyers have seen bidding at $540-545/t, CFR.
- This week, SteelMint assessment for billet import in SE Asia is $570/t CFR, up by $10 against last week.
Chinese domestic billet price up by RMB 220 ($34) w-o-w- This week, the billet prices in the Tangshan market (northeast China) settled with a rise of RMB 220 ($34), against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,880/t ($594/t) in Tangshan, inclusive of 13 % VAT.
Global billet market snapshot-
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