South East Asia’s imported billet prices remained supported on Chinese production cuts imposed by the government recently and the bullish rebar futures market. SteelMint’s bi-weekly assessment of imported billets into the Philippines standsat $715-720/t, CFR Manila, up by $20/t w-o-w.
Philippines billet import offers increase: As per the latest information available with SteelMint, imported billet offers increased to around $715-720/t CFR Manila levels, up by $10-15/t against the beginning of this week. Few offers were even heard at $725/t CFR levels.However, no deals were concluded at higher offers. Increased futures prices in China led the price increase. As per sources, a typhoon also affected the Philippines market this week.
According to data maintained with SteelMint, the Shanghai Futures Exchange (SHFE) rebar futures Oct’21 contracts on 23 Jul closed at RMB 5,671/t ($875/t), up w-o-w RMB 120/t ($19/t). Tracking the hike in futures, domestic steel billet prices in China’s Tangshan region inched up to RMB 5,200/t ($803/t) inclusive of 13% VAT on 23 Jul’ 21.
Vietnam mills active in exports: Vietnam’s mills remained active in the exports market goaded by a dull domestic demand. According to SteelMint’s sources, BF-route offers from Vietnam are at $700/t CFR Manila. With domestic sales turning dull in Vietnam owing to Covid restrictions, the mills are likely to remain active in exports.
Earlier this week, deals of IF-route billets were reported at $690/t CFR the Phillipines.
The Vietnam government has proposed an export duty of 5% on billets exports last week with an aim to ease domestic steel prices.In the latest update received, the Vietnam Steel Association (VSA) has petitioned the government against the imposition of the export tax.
Thailand billet import offers move up: Indicative imported billet offers into Thailand are hovering in the range of $710-715/t CFR from various origins, rising by around $30/t w-o-w.
On the other hand, Indian mills have continued to remain active in exports. State-owned steelmakers SAIL and RINL (VSP) floated export tenders. While RINL-VSP floated a tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade), SAIL’s tender is for 18,900 t of billets (150x150x12000 mm). Both the tenders expire on 26 Jul’21. The shipment from VSP is scheduled for mid-Sept and SAIL’s shipment is for end-Sept.
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