Weekly: Global billet market overview

The global billet market continues to remain trade active. Sizeable bookings reported in SE Asia and the Far East at increased prices. Russia, India, and Iran stood as the predominant suppliers for the week. On the other hand, we also witnessed bid-offer disparity, as the market dynamics posed volatility during the week. For instance, Chinese buyers dropped the bids as the domestic billet prices dropped by RMB 150 (recovered now). However, later they (Chinese buyers) booked Iranian billets, as they were reasonable than Russian and Indian billets.

CIS: CIS: Russia sold 20,000-30,000 t billets to the Philippines at $650/t, CFR levels. The shipment is likely to be scheduled by Jun ’21 from Vanino port (the Far Eastern part of Russia). However, the Black Sea offers remained broadly stable at $580-585/t, FoB.

India: SteelMint’s bi-weekly assessment for India billets (150*150mm, BF route, FoB East coast) is $600-605/t, up by $10 against last week.

• Indian billet export prices remained stable in a recent deal for the second consecutive week, despite volatile dynamics. An Indian state-owned mill sold 30,000 t billets at $594/t, FoB, through an export tender issued for spot sale against 100% advance payment terms. The shipment is likely to be scheduled for China by end-May ’21. The mill is hosting another spot sale tender, for which the base price heard is $610/t, FoB.
• On the other hand, a secondary Central India-based mill is reported having booked 10,000 t (130*130mm) billets for the Philippines at $635/t, CFR for May ’21 shipments.
• India: Vizag Steel floats an ocean export tender for 90,000 t blooms: Vizag Steel- a state-owned steelmaker, floated an ocean sale export tender for 90,000 t blooms (150x150mm, 3SP/4SP grade). The tender floated is against 100% advance payment terms with a due date of 20 Apr ’21. The shipment schedule is for mid-Jun ’21. In the previously concluded tender (during last week), the company achieved a price level of $594/t, FoB.

Iran: SteelMint’s bi-weekly assessment for Iranian billets is currently at $580-585/t, FoB, up by $10-12 w-o-w.

• Iranian billet export prices surged further in recent deals concluded for China and SE Asia. Two leading steel exporters of Iran reported having sold 50,000 t billets through a tender at $579-580/t, FoB. With these deals, Iranian billet export prices rose by $10, w-o-w to reach new highs
• Iran’s key steel exporter- KSC has not floated any new billet export tender this week. However, the company has floated an export tender for 30,000 t slabs for June shipment, SteelMint learned from credible sources. The company is likely to conclude the tender by 19 Apr ’21.
• Iran’s semi-finished steel exports fell by 12% y-o-y during the first 11 months of the last fiscal: Iranian semi-finished steel exports recorded a y-o-y drop of 12% during the first 11 months of the last Iranian year (20 Mar ’20 – 20 Mar ’21) to reach 5.6 mn t. The billet/bloom exports stood at 4.2 mn t, down by 5% y-o-y, while the slab exports witnessed at 1.37 mn t, down by 28% y-o-y.
• The finished steel exports also saw a decline of 19% y-o-y to reach 2.64 mn t.

SE Asia: SteelMint’s assessment for billet imports in SE Asia is $635-640/t CFR, unchanged against last week.

• This week, sizeable billet volumes have been booked by SE Asian nations from Russia, Iran, and India. The bookings are broadly for the Philippines. According to the data maintained with SteelMint, it was the first active trade week of Apr ’21 witnessed in the Philippines, as the lockdown is likely to be lifted today. However, the country had booked sizeable cargoes before imposing the lockdown.
• The bid-offer disparity was also witnessed in the region post these deals. Offers touched $650-660/t, CFR levels, while bids stayed at $635-640/t, CFR.
• Vietnam: The billet export offers to the Philippines are heard at $650-655/t, CFR (BF route), and $635-640/t, CFR (IF route).
• Thailand: Imported billet prices in Thailand are in the range of $640-650/t, CFR, up by $5 w-o-w.

Chinese domestic billet prices saw a w-o-w drop of RMB 80 ($12): This week, the Chinese domestic billet prices settled with a w-o-w drop of RMB 80 ($12). The billet transactions were moderate, and finished steel prices softened. Yesterday, the domestic billet prices reported at RMB 4,960/t ($761/t), ex Tangshan, including 13% VAT.

Global billet market snapshot: