SE Asia: Vietnam billet export offers up sharply, trades remain muted

Vietnam’s billet export offers rose this week. According to SteelMint sources, BF-route billet offers stand at $730/tonne (t), FOB Vietnam, up by $40/t on a weekly basis.

Also, IF-route billet export offers increased by $40/t w-o-w to $725/t FOB. However, no deals were heard to have been concluded this week as the market awaited clarity on prices post-the Chinese holidays.

Steel billet prices in China’s Tangshan rose by RMB 80/t ($12) on 8 Oct’21 as the market opened up after the Golden Week holidays. Prices of domestic billets stood at RMB 5,290/t ($820/t), inclusive of 13% VAT. China’s rebar futures contract for Jan’22 delivery on SHFE closed today at RMB 5,750/t ($891/t) with an increase of RMB 44/t ($7/t) against the closing on 30 Sept’21.

SE Asia’s imported billets market lacks clarity: South East Asia’s imported billet prices remained supported this week. However, not many deals were recorded. SteelMint’s latest bi-weekly assessment of imported billet offers from South East Asia stood unchanged at $690/t, CFR Manila.

“The market has just opened today (8 Oct’21) and market participants will have clarity on offers and bids by coming Monday (11 Oct’21),” a reliable source told SteelMint.

Market highlights:

• Thailand’s imported billets offers range-bound: Indicative imported billet offers into the country are hovering in the range of $690-700/t CFR.
• Indian billet exporters await return of Chinese buyers: The Indian billet exports market continued to remain quiet amid the China Golden Week holidays. Recently-held billet tenders were heard to have fetched subdued participation and hence were cancelled.
• SAIL has floated an export tender for around 16,200 t of prime mild steel non-alloy concast billets from its Durgapur Steel Plant (DSP) in West Bengal. The cargo is scheduled for end-Nov’21 shipments. Buyers have to quote bids on SAIL’s website latest by 16:00 IST on 11 Oct’21. The offer is valid up to 17:00 IST of 14 Oct.
• The Iranian market is waiting for Chinese buyers to return to get a clarity on the market. Meanwhile, no export deal has been concluded so far this week. However, Khouzestan Steel Company (KSC), Iran’s leading steel exporter, happened to have floated an export tender for 40,000 t of steel billets recently this week. The shipment is likely to be scheduled for mid-Nov’21.