SE Asia: Imported billet offers fall as China starts exploring opportunities

After a few weeks, billet has started trading in the SE Asian import market. However, the buyers anticipating the prices to fall further continue remaining in the wait-watch mode. On the other hand, on sluggish domestic demand, China has entered the global billet market and is exploring opportunities. This week, the Philippines reported having bought Chinese billets at $590-600/t, CFR. The price drop was governed by the fall in global scrap prices.

Marketers believe that although China’s offering is situational it is likely to pull down the imported billet prices in SE Asia.

Deals & offers-

CIS- The offers from CIS have come down significantly to $560-565/t FoB.

India- This week, we have seen few government-owned mills offering material for exports.

• Vizag Steel – a state-owned steelmaker, has floated 30,000 t prime concast blooms export tender for shipment scheduled in 1st week of Mar’21. The due date of the tender is 27 Jan’21. Its last tender was concluded at $575-580/t FoB in 1st week of Jan’21.
• Steel Authority of India Limited (SAIL), another Indian state-owned company, floated an export tender for 16,200 t (300 x 335 mm) non alloys concast blooms. The due date of the tender is 21 Jan ’21 and the shipment is to be delivered by the end-Feb ’21.

Our analysis says Indian billet export prices may soften on falling global scrap prices but are not likely to witness a sharp fall amid robust domestic demand.

Iran- Iranian billet export prices have fallen slightly this week. However, we still didn’t witness any trades. A leading Iranian steel exporter has floated a billet export tender. The majority of Iranian mills are holding back from offering billet for exports, considering the price drop in the global market. SteelMint’s billet export price assessment stands at $560-565/t FoB, lower by $5 w-o-w.

Vietnam – The BF billet export offers from the country witnessed a marginal drop this week, and the offerings are currently standing at $585/t, FoB Vietnam (BF route). While IF route billets are offered at $580/t, FoB Vietnam.

Thailand- Billet import offers in the country saw a sharp drop after China entered the SE Asian market. The offers in the country are seen hovering at $590-595/t, CFR, down by $10-15 w-o-w.

This week, SteelMint assessment for billet import in SE Asia is $590-600/t CFR, down by $5-10 against last week.