This week, the global billet market witnessed sizeable trades just before the Chinese New-Year holidays (CNY) kick-off. The bookings were predominantly done for the SE Asian destinations. The FoB level offers from all the major regions like CIS, India, and Iran have declined. However, due to the rise in freight cost amid congestion in the SE Asian and South China ports, the imported billet prices witnessed an increase.
Meanwhile, China has signaled that it is likely to resume billet imports actively post CNY. At the end of the last week, China has booked a couple of billet cargoes from Russia and Indonesia at $525/t, CFR, and $540 CFR respectively. This has set an upward tone for the post-holiday market, strongly supported by increasing Chinese rebar futures, which reported having increased by over RMB 100, w-o-w.
CIS- This week, CIS offers witnessed a fall of $10-15 and are currently at $530/t, FoB Black Sea.
India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $510-515/t, down $8-10 w-o-w.
- An Indian spot sale export tender floated for 30,000 t billets (150*150mm, 3SP/4SP grade) by a mill received limited response. The dull response was due to the ongoing CNY. The base price of the tender was at $510/t, FoB India, SteelMint gleaned from its credible sources.
- Indian billet export prices witnessed a marginal fall in a recent deal. This was the third consecutive week when billet prices were seen dipping. According to SteelMint sources, a state-owned mill booked a billet cargo at $515/t, FoB. The deal was done off-tender for around 16,200 t (150*150mm).
Iran: SteelMint’s bi-weekly assessment for Iranian billets is currently at $510-515/t, FoB, down by $10-15 w-o-w.
- Iranian billet export offers continuing dipping for this week as well. However, we have not witnessed any deals at revised price levels. The ongoing Chinese New Year holidays (11-18 Feb ’21), have kept the buyers quiet.
- Khouzestan Steel Company (KSC), floated an export tender for 30,000 t billets. The shipment is likely to be scheduled for Mar’21. The tender is likely due date is 13 Feb’21. The company is expecting the price levels of $510-515/t, FoB Iran.
- The domestic market continues fetching strong demand: It was the third consecutive week when sizable billets reported having traded at the Iranian Mercantile Exchange (IME). However, prices dropped for this week as well. According to our sources, this week around 110,730 billets were traded at an average price of IRR 101,641/kg ($406/t), down by IRR 3,343/kg ($24/t) w-o-w. The offered quantity was around 132,000 t.
SE Asia- This week, SteelMint assessment for billet imports in SE Asia is $550-560/t CFR, up by $15-20 w-o-w.
- Imported billet prices in SE Asia saw a rise in recent bookings reported from Japan at $545-550/t, CFR. The deals have set an upward tone for the post-holiday market as the indicative offers were heard at $550-560/t, CFR. The price hike sentiments were also strongly driven by the increasing Chinese rebar futures, which reported having increased by over RMB 100, w-o-w.
- “The market is quiet today due to Chinese New-Year holidays (CNY). We will have a better picture early next week. However, billet import offers in SE Asia are pushing up”, highlighted a trader.
- Thailand – The imported billet offers in the country broadly remained stable this week, at $550/t, CFR.
Chinese domestic billet prices closed flat before CNY- Chinese domestic billet prices closed unchanged before the Chinese New-Year holidays (CNY). The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,850/t ($596/t) in Tangshan, including 13 % VAT, unchanged w-o-w.
Global billet market snapshot-
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