Weekly round-up: Global billets market subdued on falling Chinese steel futures

The continuous decline in Chinese steel futures has turned the global billets market silent, keeping traders at bay. According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery closed on 22 Oct’21, at RMB 4,900/t ($767/t), witnessing a sharp decline of RMB 615/t ($96/t), w-o-w.

Market highlights:

• Indian billet exports market sees limited trade: A state-owned steelmaker floated an export tender for the sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). According to market sources, the tender was heard to have got cancelled. Also, SAIL floated an export tender for around 18,900 t of prime mild steel non-alloy blooms from its IISCO Steel Plant in West Bengal. The cargo is scheduled for end-Dec’21 shipment. Buyers had to quote bids on SAIL’s website latest by 21 Oct’21. The offer must be valid up to 25 Oct’21. However, the tender was heard to be cancelled, sources informed SteelMint.
• SE Asia’s imported billets market remains silent: The imported billets market in South East Asia remained passive this week owing to declining rebar futures on the Shanghai Futures Exchange (SHFE). SteelMint’s bi-weekly assessment of imported billets for South East Asia currently stands at $690/tonne (t) CFR Manila, a drop of around $15-20/t, w-o-w.
• Vietnam’s billets export market less active: Vietnam’s billet exports market remained less active this week. According to SteelMint sources, BF-route offers are at $710/t, FOB and no deals were heard concluded this week.
• Thailand’s imported billet offers stable: Indicative imported billet offers into the country are hovering around $720/t CFR from various origins, unchanged, w-o-w.
• Iranian billets export prices up in recent trade: The Iranian billets exports market has seen an uptrend in the form of the recently concluded billet export deals. Both domestic and export markets have shown some promising trade this week so far. An Iranian mill has reportedly concluded another package of 30,000 tonnes (t) of steel billets (150mm, 3SP) for exports a few days back, sources informed SteelMint. The shipment is likely to be scheduled for Nov’21. According to market sources, the deal was concluded at a price level of $645/t, FOB Iran. KSC has floated two tenders for exports of 40,000t of billets and slabs each for November shipments.
• China’s billet prices decline following drop in futures: Steel billet prices in China’s Tangshan witnessed a sharp decline of RMB 260/t ($41/t), w-o-w. Domestic billet prices stood at RMB 4,990/t ($781/t) towards the weekend, inclusive of 13% VAT.