Imported billets prices dropped in recent deals concluded from Vietnam. SteelMint’s bi-weekly assessment of imported billet offers into South East Asia currently stands at around $670-675/tonne (t), CFR Manila. The market is still silent and buyers’ interest has been affected due to soaring Covid cases alongside speculations that the lockdown may get extended beyond 31 Aug’21.
Market highlights
- Vietnam mill concludes deal to the Philippines: Vietnam’s BF-route billet export offers were heard at around $630/t FoB Vietnam, a drop of $10/t w-o-w. A leading Vietnamese steel mill reportedly sold around 40,000-50,000 t of billets (BF-route) to the Philippines at around $670-675/t, CFR. The shipment is likely to be scheduled for Sep-Oct’21, sources told SteelMint. Subdued domestic sales in the domestic market have kept Vietnam mills active in exports.
- Thailand billet import offers inch down: Indicative imported billet offers into Thailand are hovering at around $650-660/t CFR from various origins, lower by $5/ w-o-w. Thailand registered a 19.31% y-o-y rise in steel billet import volumes in the first seven months of CY’21 (Jan-Jul’21). The volumes stood at 2.10 million tonnes (mn t) in Jan-Jul’21 as against 1.76 mn t in Jan-Jul’20, according to customs data compiled by SteelMint. Imports of the material in Jul’21 stood at 0.25 mn t, down by 24% y-o-y as compared to 0.33 mn t in Jul’20.
- Recent Indian billet export tender fetches dull response: The Indian billet exports market continues to remain silent so far this week after witnessing limited participation that resulted in cancelling of export tenders issued by companies. The recent Indian billet export tenders floated by mills saw almost no participation due to volatile Chinese steel futures. Also, demand concerns over steel production cuts in China weighed down bids. An export tender was floated for 25,000 t of steel billets (65x65mm, grade: C20MMn Gr.) having due date scheduled for 23 Aug’21 and shipment in the first week of Oct’21. This tender was also heard to have fetched a dull response.
- Iran’s billet export market silent, domestic trade resumes on IME: Iran, one of the leading billet exporters, continues to remain quiet since last one month owing to power outages and other policy restrictions on exports. No offers or deals for billet exports were concluded recently. The Mining Industries Office of the Government of Iran, softening its earlier stand, has lifted the restrictions barring around 84 steel mills from exporting long steel products. Further, the government extended export licenses for one more month – till Oct’21.
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