Weekly: Global billet market overview

This week, the global billet market witnessed improved trade amid rebound in Shanghai Futures Exchange (SHFE) rebar market. However, the futures market posted an upward trend for the entire week, but the marketmen believe it is yet to gain stability. According to data maintained with SteelMint, the SHFE rebar futures Oct ’21 contracts on 11 June ’21 settled with a d-o-d rise of RMB 154/t ($24/t) to RMB 5,322/t ($833/t). However, on a w-o-w basis, they (futures) rose by RMB 163/t ($26/t).

Russia: A Russian mill reportedly sold around 20,000 t of billets to the Philippines at $695/t, CFR, recently from the far eastern part of the country. On the other hand, Black Sea offers also saw a rise amidst rising SHFE rebar futures. These offers are currently at $645-650/t FoB, up by $5-10/t w-o-w.

India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast), published on 11 June ’21 was $610-615/t, unchanged against last week.

• Until mid-week, the Indian billet exports market remained silent on high bid-offer disparities amid volatile SHFE rebar futures market.
• However, at the weekend, an Indian state-owned mill reportedly sold 30,000 t steel blooms (150*150mm) through export tenders. According to SteelMint sources, the mill concluded the tenders at $604-606/t, FoB, on advance payment basis. The cargo readiness schedule is by end-Jul ’21.

Iran: SteelMint’s bi-weekly assessment for Iranian billets is $630/t FoB, down by $10 w-o-w

• Iranian billet export prices dropped further in a recent export deal concluded by a leading Iranian billet exporter, Chadormalu Mining and Industrial Company. According to SteelMint sources, the company sold 30,000 tonnes of billets at $630/t FoB. The shipment is likely to be delivered by the end of July’21.
• On the other hand, several other mills adopted a wait-and-watch approach to get clarity on the dynamics.
• A few sellers like Khouzestan Steel Company (KSC) had floated a tender for around 30,000 t of billets last week. The tender is still under negotiation, as the bid-offer gap is wide. Traders informed that the mill was targeting $640/t FoB.
• Iran’s physical markets are not rising parallel with the futures market amidst sluggish finished steel demand, leading to limited trade on the Iran Mercantile Exchange (IME)

SE Asia: SteelMint’s bi-weekly assessments of imported billet offers in SE Asia are currently at $695-700/t, CFR Manila, up by $20/t against last week.

• After remaining quiet for more than two weeks, South East Asia’s imported billets market saw sizeable billets volumes being booked from Russia and an ASEAN nation. The cargoes were booked for the Philippines in the price range of $695-705/tonne (t) CFR.
• Indonesia: A leading Indonesian mill recently sold around 20,000 t of billets to the Philippines at $700-705/t CFR. However, the country’s domestic billets market remained sluggish, SteelMint learned from local sources.
• Vietnam: The BF-route billet offers from the country dropped sharply by $20/t, on a w-o-w basis, amidst the volatile rebar futures market. According to SteelMint sources, BF-route offers are at $670/t FoB, while IF- route offers are at around $660/t FoB.
• Thailand: Indicative imported billet offers into the country are at $700/t CFR. Billet offers are mainly heard from the ASEAN side, said a SteelMint source. However, the bids are at $680-685/t CFR.

China: The Chinese domestic billet prices settled at RMB 5,010/t ($783/t), ex-Tangshan, including 13% VAT on 11 June ’21, up by RMB 10/t ($1.6/t) on a w-o-w basis amid the up-trending SHFE rebar futures.

Global billet market snapshot: