The global billet market witnessed sizeable trades, despite hiked freights. The bookings broadly were made by the SE Asian nations and China. Russia and India stood as the predominant suppliers during the week. While on the other hand, Iran remained silent amid the New Year holidays (Nowruz). The rising Chinese domestic billet prices along with rebar futures are supporting the rise of global billet prices.
CIS billet export offers fall: 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 $555-560/t, FoB.
India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is at $545/t, unchanged w-o-w.
- A couple of Indian state-owned mills reported having booked over 60,000 t billets for SE Asian nations and China for Apr/May ’21 shipments.
- Post these bookings the Chinese bids for Indian billets rose to $615/t, CFR levels.
Iranian mills await the outcome of billet export tenders for price trends: SteelMint’s bi-weekly assessment for Iranian billets is $550/t, FoB, up by $5 w-o-w.
- Iranian billet export market remained silent and broadly stable amid the Persian New Year holidays (Nowruz). However, Iran’s leading steel exporter, Khouzestan Steel Company (KSC), has floated an export tender for 30,000 t billets (150*150mm). The shipment is likely to be scheduled for May’21. The company is expecting the price to be in the range of $550-555/t, FoB.
- Domestic trades remain absent amid holidays – On the other hand, the Iranian Mercantile Exchange (IME) did not host a trade event this week because of the prevailing holidays of Nowruz.
Philippines billet import prices rise: SteelMint’s assessment for billet imports in SE Asia is $605/t CFR, up by $5-10 w-o-w.
- This week, sizeable quantities of billets were traded in the SE Asian imported market with increased prices due to an increase in freight rates. The bookings broadly were made by the Philippines mills from Russia of around 50,000 t billets.
- Despite sluggish sentiments, amid rising COVID cases, the Philippines mills managed to bag bookings at reasonable price levels, considering the continuously climbing freights.
- On the other hand, other ASEAN markets like Indonesia remained silent in terms of billet imports, SteelMint learned from Indonesian traders. However, a leading Indonesian mill was heard offering billets at $605-610/t, CFR China.
- Vietnam billet export offers remain rangebound: The BF route billet export offers from Vietnam remained stable at $590/t, FoB.
- Thailand: The imported billet prices in Thailand were in the range of $600-605/t, CFR.
Chinese domestic billet prices hit 12-years high: This week, Chinese domestic billet prices settled with a rise of RMB 230 ($35) owing to production cuts. The billet transactions were moderate, and the prices of finished steel consolidated within a narrow range. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,710/t ($720/t) in Tangshan, including 13 % VAT.
Global billet market snapshot:
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