Weekly round-up: Global billet prices head north

Global billet market sentiments remained supported this week on the back of renewed Chinese buying interest and rising steel futures.

Market highlights:

• Indian billet export offers remain supported: Indian mills have been fetching higher prices in recent billet export deals. An export tender for 30,000 of 150mm (4SP) of steel billets floated by a state-owned mill was reportedly concluded at $620-625/t FoB India east coast, sources confirmed. Prices climbed higher by $30/t from the last tender concluded early this week. Global prices are moving higher on renewed buying interest from China. Also, another Indian state-owned mill is reported to have concluded another package of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The shipment is scheduled within 45 days from the export agreement. According to market sources, the deal was concluded at around $590-595/t FOB (on 100% advance payment basis).
• SE Asia imported billet market quiet despite renewed China buying: South East Asia’s imported billet market remained quiet, even as bids increased tracking the hike in Chinese steel futures and active deals in China. SteelMint’s bi-weekly assessment for billet export offers from South East Asia are currently at $695/tonne (t) CFR Manila, up $25-30/t against last week.
• Iran billet export prices up amid hike in Chinese steel futures: Esfahan Steel Company, one of Iran’s leading steel exporters, floated an export tender for 30,000 t of steel billets, as per market sources. The shipment is likely to be scheduled for Oct-Nov’21. SteelMint’s bi-weekly export assessment for Iranian billets stood at $607/t, FoB Iran, on 7 Sep’21. Also, Chadormalu Mining and Industrial Company, one of Iran’s leading steel exporters, floated an export tender for 30,000 t of steel billets for Oct-Nov’21 shipments. Iranian exporters are eyeing $630/t FoB levels following a hike in Chinese import prices. However, Iran is still reeling under the pressure of electricity shortage which has kept steel production and exports subdued.
• Vietnam billet export offers rise on improved Chinese buying: Vietnamese mills remained active in the exports market this week. BF-billet offers from the country increased by around $30-35/t on a weekly basis. According to SteelMint sources, BF-billet offers were at around $660-665/t FoB Vietnam. A Vietnam-based mill concluded an export deal for 20,000 t of BF-billets to China at $660/t FoB (equivalent to $690/t CFR). Another deal from a Vietnamese mill was heard to be concluded at $665/t FoB (equivalent to $700/t CFR).
• Indonesian mill concludes billet export deal for China: As per the latest deals tracked by SteelMint, a leading Indonesian steel mill concluded a billet export deal for 30,000 t to China at around $710-715/t CFR levels. The shipment is scheduled for Nov’21.
• Thailand’s imported billet offers rise: Indicative imported billet offers into the country are hovering in the range of $720/t CFR, up around $65/t, w-o-w.
• Middle East-based mills active in exports: According to market sources, a Qatar-based mill sold 45,000 t of steel billets (3SP) at around $710-712/t CFR. Also, a UAE-based mill, reportedly, sold 25,000 t of billets at $645/t FoB, recently. Two deals from the Middle East-based mills were also heard to be concluded at $695/t and $715/t, CFR China, respectively.
• Chinese domestic billet prices rise towards the weekend: Steel billet prices in China’s Tangshan rose by RMB 160/t ($25/t) w-o-w. Domestic billet prices stood at RMB 5,200/t ($807/t), inclusive of 13% VAT. According to data maintained with SteelMint, China’s rebar futures contract for Jan’22 delivery closed at RMB 5,640/t ($876/t) on 10 Sep’21, a noticeable increase of RMB 232/t ($36/t) w-o-w.