The global billet market remained trade active, as China and the Philippines booked sizeable billet volumes on rising Chinese rebar futures. India, CIS, and GCC nations stood as the predominant suppliers of the week. This week, futures witnessed having settled with a rise of RMB 183/t ($28/t) at RMB 5,299/t ($816/t). The dormant markets like Africa also reported having booked decent volumes from India and Iran.
In addition to it, imported scrap prices to Turkey have rebounded in recent bookings concluded for deep-sea bulk cargoes for May shipments. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $429/t CFR Turkey, up by $5-10/t against the beginning of this week. This in turn has supported a hike in billet prices.
CIS: The CIS-based mills reported sales of over 100,000 t billets in the Philippines at price levels of $650/t, CFR. Black Sea offers remained broadly stable at $590/t, FoB levels. However, during conversations with a trader, SteelMint learned that “the prices are rising now. Dormant markets like Tunisia are giving higher bids. Turkish buyers started bidding over $ 600/t, CFR. It looks like the market is bouncing back.”
India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is $600-605/t.
- An Indian billet export tender fetched bid higher by $7/t on rising Chinese futures. This week, An Indian state-owned mill reported having sold 60,000 t billets through a tender on 100% advance payment basis in the price range of $590-600/t, FoB. The expected schedule shipment is mid-Jun ’21, with China as the likely destination.
- On the other hand, a few of Gujarat based secondary mills reported having sold over 15,000 t billets in Africa today. However, we are still confirming the price level of the deals. Though a few of our sources mentioned that these deals are concluded above $585-590/t, FoB Kandla levels (the Western India Coast).
Iran: SteelMint’s bi-weekly assessment for Iranian billets is $585-590/t, FoB Iran, up by $5 w-o-w.
- Iranian mills eye higher prices in upcoming billet export tenders.
- Iranian billet export market continued to remain active for this week as well. One of the leading Iranian steel exporters reported having sold around 20,000 t billets for the MENA region at $585/t, FoB.
- On the other hand, other major Iranian mills are likely to float billet export tenders by the next Iranian week, sources reported to SteelMint. The export offers from the country witnessed in the range of $587-592/t, FoB.
- Domestic billet prices rose sharply: In a recent trade event hosted at the Iranian Mercantile Exchange (IME), the domestic billet prices rose by IRR 6363/kg ($27) to reach IRR 117,892/kg ($487/t). The demand witnessed a significant increase post-Ramadan.
SE Asia: SteelMint’s assessment for billet imports in SE Asia is $645-650/t CFR, up by $5-10/t w-o-w.
- Trades in SE Asian imported billet market remained active for the second consecutive week. Chinese rebar futures consequently increased the bids which resulted in attracting sizeable imports into the region. The bookings broadly were for the Philippines with Russia and Ukraine being the predominant suppliers for the week.
- Vietnam billet export offers up by $20:The BF route billet export offers from the country were reported at $640/t, FoB.
- Thailand: Imported billet prices in Thailand remained unchanged at $650/t, CFR.
China This week, the Chinese domestic billet prices remained broadly stable despite fluctuating rebar futures, and witnessed having settled with a drop of RMB 10 ($1.5) at RMB 4,950/t ($762/t), ex Tangshan, including 13% VAT.
Global billet market snapshot:
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