SE Asia: Billet import prices shoot up in recent deals

SE Asian imported billet market witnessed multiple bookings at the end of the Chinese new year (CNY) holidays. India and Iran were the predominant suppliers, during the week. The bookings were largely done for Thailand and the Philippines. According to the deals confirmed by SteelMint, this week, approximately 80,000 t billets were booked at the increased prices. The post-CNY market is likely to back sellers, cutting-off the buyers’ anticipation of a drop in prices.

Hike in global scrap prices and increase in Chinese steel futures supported the billet price hike.

During conversations with market participants, we learned that seasonal demand in China is likely to rise and so will the domestic prices. This will create room for billet imports in China and consequently will pull-up the global billet prices.

Deals and offers-

India: Two cargoes of approximately 50,000 t billets (30,000t and 18,900 t) reported having booked from the country for SE Asian destinations. The deal value is around $520/t, FoB India and $560/t, CFR (equivalent to $525-530/t, FoB). SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is currently at $ 520-525/t, up by $10-15 w-o-w.

Iran: Iran’s leading steel exporter, Khouzestan Steel Company (KSC) booked 30,000 t billets through a tender at $515-520/t, FoB Iran for a SE Asian destination. The shipment is likely to be scheduled by Mar ’21. The company is likely to float another export tender for 30,000 t billets by 20 Feb ’21, with a price expectation of $525-530/t, FoB. SteelMint’s bi-weekly assessment for Iranian billets is currently at $520-525/t, FoB, up by $10-15 w-o-w.

Thailand – This week, the imported billet offers in the country saw a rise of $10-15 and are currently seen at $555-560/t, CFR.

Vietnam- The Vietnamese billet offers registered a sharp rise post CNY. The BF route billets were being offered at $560-565/t, FoB, while the IF route was at $550/t, FoB Vietnam.

This week, SteelMint assessment for billet imports in SE Asia is $565-570/t CFR, up by $10-15 w-o-w.