Global billet market sentiments remained supported on the back of Chinese steel production cuts. The highlights of this week are as follows:
Indian mills continue to fetch higher prices in recent billet export tenders: A state-owned Indian steelmaker has floated an export tender for spot sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender floated is against 100% advance payment terms with the due date being 28 Jul’21. The shipment is scheduled by mid-Sept. According to market sources, the deal has been concluded at $628-630/t FoB.
A state-owned Indian mill has concluded a deal of 18,900 t steel billets (150x150mm, 4SP/5SP), scheduled for end-Sept delivery at around $640-645/t FoB.
An eastern India-based leading steel mill has concluded an export tender for 25,000 t of steel billets (150x150mm; grade: 3SP/4SP) for Sept’21 shipment, SteelMint learnt from sources. The deal has been concluded at around $650/t FoB (equivalent to $725/t CFR China). Hike in rebar futures, China’s steel production cuts, loss in steel output by Iranian mills due to power outages have all kept demand for Indian billets firm in the global market.
Iranian steel body seeks mitigation of output losses: The Iranian Steel Producers Association (ISPA) has urged for fair production planning across Iran’s energy sectors so that the steel mills are allowed to keep producing a minimum volume to meet domestic demand as well as essential export obligations.
ISPA has written to the Iranian government, saying that the curbs relating to the supply of electricity to the steel industry has caused heavy daily losses to the steel mills and the country’s economy. On average, more than 85% of active units had to shut down, which will definitely have adverse consequences on the domestic steel industry as well as the export market in the coming months.
SteelMint’s bi-weekly export assessment for Iranian billets stood at $653/t FoB on 30 Jul’21.
Vietnam mills remain active in exports: Vietnam’s mills continued to remain active in the exports market. IF route billet export offers were heard around $680-690/t FoB Vietnam for Philippines.
Thailand-based mills explore billet export options: With global billet prices observing an increase, Thailand-based mills have started exploring billet export options. Mills in Thailand are exporting steel billets (EAF route) to China at around, $715-720/t CFR. Also, the deals of IF-route billets to China were reported at $700/t CFR.
Indicative imported billet offers into Thailand are hovering in the range of $715/t CFR from various origins. Thailand’s steel billet imports in Jun’21 stood at 346,256 t. Billet imports rose 38% m-o-m from 250,734 t in May’21. Imports shot up to 1.85 mn t in the Jan-June’21 period as against 1.429 mn t in H1 CY’20, up by 29% on the year, as per data collected by SteelMint.
Chinese domestic billet prices rise towards the weekend: According to data maintained with SteelMint, the Shanghai Futures Exchange (SHFE) rebar futures Oct’21 contracts on 30 Jul’21 closed at RMB 5,737/t ($888/t), up w-o-w RMB 66/t ($10/t). Tracking hike in futures, domestic steel billet prices in China’s Tangshan region rose up to RMB 5,270/t ($816/t), inclusive of 13% VAT on 30 Jul’21. On a weekly basis, Chinese domestic billet prices have recorded a sharp hike of RMB 70/t ($11/t).
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