Imported billet prices in SE Asia surged this week. Chinese domestic billet prices spiked with production dipping by 30-50% in Tangshan as pollution control measures were strictly enforced. This shortage resulted in global billet prices becoming buoyant. Due to this, the re-rollers in countries like Indonesia are preferring local billets. However, finished steel demand in Indonesia is sluggish, and struggling hard to revive.
The government of the Philippines has imposed lockdown measures owing to increased COVID cases. However, last week the country imported sizeable billet volumes in the price range of $600-605/t, CFR. The current offers for imported billets are ranging between $620-635/t, CFR. While bids witnessed are at $610-620/t, CFR.
CIS: During the end of the last week, Russia sold sizeable billet cargoes to China at $605-610/t, CFR from the far East part of Russia. Post this deal, Black Sea offers witnessed a rise and are at $565-570/t, FoB levels. While, offers from Far East port are $585/t, FoB for Jun ’21 shipments.
India: Indian billet prices remained supported on the back of rising Chinese domestic billet prices. Indian mills are highly active in the export market. For instance, Vizag steel has floated billet (65*65mm, 90*90mm) and bloom (150*150mm, 200*200mm) tenders for 100,000 t. The delivery is likely to be scheduled for mid-May ’21.
During conversations with a state-owned mill, we learned that the export price indications are currently at $560-570/t, FoB. However, Steelmint witnessed no deals at these price levels. The last confirmed billet export trades from Indian BF grade billets concluded at $550-555/t FoB towards the end of the last week.
Iran: Iranian billet export prices surged in a couple of billet tenders concluded for China floated for 60,000 t (30,000 t each). The tenders fetched the price level of $559-560/t, FoB, up by $10 against previous bookings. SteelMint’s bi-weekly assessment for Iranian billets is $555-560/t, FoB, up by $5-10/t, w-o-w.
Vietnam: The BF route billet export offers from Vietnam are at $605/t FOB, up by $15. However, a leading Vietnamese mill was heard offering at $615/t, FoB Vietnam.
Thailand: The imported billet prices in Thailand are in the range of $615/t, CFR, up by $10-15 w-o-w.
SteelMint’s assessment for billet imports in SE Asia is $625-630/t CFR, up by $15-20 w-o-w.
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