SE Asia: Sizeable billet trades reported at stable prices

This week, sizeable billets were traded in the SE Asian imported billet market. The bookings broadly were from Russia, Iran, and a couple of ASEAN nations, with the Philippines and Thailand as the likely destinations. The deal values ranged from $590-600/t, CFR.

However, post these deals, buying bids saw a drop of $5-10/t, owing to volatile Chinese rebar futures. Also, in the near future, it is anticipated that market sentiments might go bearish in the region, as a few nations like the Philippines are likely to impose the lockdown amid increasing COVID cases. SteelMint learned this from international and regional traders.

Deals & offers:

• CIS billet export offers fall in recent trade: The Philippines-based mill reportedly booked 20,000 t billets (5 SP grade) from Russia (far Eastern port) recently. According to the SteelMint sources, the deal value was at $595-600/t, CFR Manila. However, Black Sea offers registered a w-o-w drop of $10-15/t and are currently at $570/t, FoB.
• Indian billet export market remains silent: Indian billet export market remained broadly silent this week amid bid-offer disparity. The hike in freight rates is becoming a matter of concern, though shipping companies are likely to go soft on the freights- SteelMint learned from the traders. A couple of Indian state-owned mills are under tendering process for around 100,000 t billets (Apr ’21 shipments). SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is at $545-550/t, unchanged w-o-w.
• Iranian mills turn active in export market: A couple of leading steel exporting mills reported having sold 60,000 t billets to China and a SE Asian destination in the price range of $542-550/t, FoB. SteelMint’s bi-weekly assessment for Iranian billets is currently at $540-550/t, FoB down by $5-10 w-o-w.
• Vietnam billet export offers fall by $20 w-o-w: A leading Vietnamese mill booked around 10,000 t billets within the ASEAN at $595-600/t, CFR at the end of the last week. The billet (BF route) export offers from Vietnam are now at $580/t, FoB, down by $15-20 w-o-w.

SteelMint’s assessment for billet imports in SE Asia is $590-600/t CFR and remains unchanged, against last week.

Confirmed trades: