Weekly: Global billet market overview

This week, the global billet market witnessed sizeable trades at increased prices. Active buying from China kept the global billet market active. Unlike last week, SE Asian market also booked decent billet volumes from India and Iran. However, the sudden drop in the SHFE rebar futures towards the weekend has left the market with concerns. On 14 May ’21, the futures slipped by RMB 274/t ($43/t) day-on-day (d-o-d) and settled RMB 5,641/t ($877/t).

India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, IF route, FoB east coast) is $700-705/t, up by $15-20 w-o-w. Indian BF-route cargo recently got sold in the Philippines at $700-705/t FoB India for June’21 shipments.

• Vizag Steel, a state-owned steelmaker, floated three export tenders for 60,000 t blooms. The tender due date is 18 May ’21. However, the bid validity is till 24 May ’21.
• An Eastern India-based mill reportedly sold 30,000 t billets in China recently at $780-785/t CFR for June ’21 shipments, which translates to around $710-720/t FoB India.
• Most IFs are now operating at 40-50% capacity amid sluggish demand, induced by the Covid lockdown in various states supported by oxygen diversion for medical purposes. Owing to this, Indian induction-based mills, especially from central and eastern India, have become very active of late, in the export market

Iran: SteelMint’s bi-weekly assessment for Iranian billets is $690-700/t, FoB, up by $70-75 w-o-w.

• Iranian billet export prices surged in recent deals for South East Asia and China concluded through tenders. Prices a spiked by over $40/tonne (t) week-on-week (w-o-w). The tender sold to China fetched $20 higher than the deal concluded to SE Asia.
• SteelMint has learnt that Iranian mills are eyeing around $700/t FoB Iran in their upcoming tenders.
• Chadormalu sold 30,000 t of billets to China through the tender concluded on 11 May ’21 for June shipments. Sources said the company had achieved a price level of $667-670/t, FoB Iran, higher by around $70 against its previously concluded tender in end-Apr’21.
• Khouzestan Steel Company (KSC), Iran’s leading steel exporter, is heard to have floated export tenders for billets and slabs (30,000 t each) for June ’21 shipments. In conversation with a company official, SteelMint learned that it is expecting a price level of over $700/t FoB Iran for the tender.
• On the other hand, domestic demand remained sluggish this week on account of Eid, SteelMint learned from a market participant. Hence, no trades were seen at on the Iranian Mercantile Exchange (IME).

SE Asia: SteelMint’s bi-weekly assessment for imported billets in SE Asia is currently at $740-745/t, CFR Manila, up by $40-45 against last week.

• South East Asian imported billet markets witnessed sizeable trades, unlike last week. The billet cargoes are of Iranian and Indian origin and are likely to have been bought by Thailand and the Philippines, respectively.
• Imported billet offers in SE Asia were at $760/t CFR levels while buying indications were seen at $740/t CFR.

Vietnam: BF-route billet export offers from the country were heard at $800/t FoB, up by around $50 w-o-w. No IF-route offers were heard for this week.

Thailand: Imported billet offers in the country were at $750-760/t CFR, up by $75-80 against last week.

China: Chinese domestic billet prices rise by RMB 450/t ($70/t) w-o-w. However, amid a drop in SHFE rebar futures by RMB 274/t ($43/t), d-o-d, the prices on 14 May ’21 witnessed a significant fall of RMB 150/t ($23/t), d-o-d. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 5,670/t ($881/t) ex Tangshan including 13% VAT.

Global billet snapshot: