Weekly round-up: Global billets market remains subdued

The global billets market remained muted this week in the absence of firm buying interest from China, drop-in bids from South East Asia and limited deals. However, Egypt’s Ministry of Trade and Industry recently revoked the 25% and 16% safeguard duties on imports of rebars and billets, respectively, which is likely to boost imports of steel billets by the country.

Market highlights

• Indian billets export prices drop: Indian billets export prices continued to exhibit a downtrend following the drop in bids from China and South East Asia. However, billet prices fell to around a four-month low, as per data maintained with SteelMint. An Indian mill was reported to have floated an export tender for 30,000 tonnes (t) of square billets (150mm, 4SP) for December delivery. The company managed to fetch bids in the range of $590-595/t FOB India, SteelMint learnt from sources. It was also learned that the bid put up was for the non-Chinese market, most probably for Egypt or Turkey. Also, Vizag Steel floated two ocean sale export tenders on 18 Nov’21. The first is for 20,000 t of steel blooms (200x200mm, 3SP/4SP grade), while the other is for 10,000 t of steel blooms (150x150mm, SAE 1008 grade) on FOB ST, delivery basis against an irrevocable letter of credit on payment at sight terms. The shipment is scheduled for end-December and the tender’s due date is 23 Nov’21.
• Iranian billets export prices drop to 6-month lows: Iranian billets export prices saw a sharp decline on falling Chinese futures and weak global demand. Billets prices in Iran fell to around six-month-lows, as per data maintained with SteelMint. This week, no firm deal for exports was recorded by SteelMint. SteelMint’s price assessment for Iranian billets exports (150*150 mm, 3sp, BOF route) stood at $600/t FOB, down by around $20/t w-o-w.
• Vietnam’s billets export offers down: BF-route billets offers from the country decreased by $20/t on a w-o-w basis to $610/t FOB, according to SteelMint sources. No deals were heard to have been concluded this week.
• SE Asia’s imported billets market silent: The South East Asian imported billets market remained bearish this week with only a few deals heard for the Philippines at around $660/t CFR. SteelMint’s bi-weekly assessment of imported billets offers from South East Asia currently stands unchanged at $660/t, CFR Manila, w-o-w.
• Thailand’s billet import prices fall: Indicative imported billets offers into the country stood at $620/t CFR, a significant fall of $35/t, w-o-w.
• China’s billet prices fall towards the weekend: Steel billets prices in China’s Tangshan witnessed a drop of RMB 90/t ($14/t), w-o-w. Domestic billet prices stood at RMB 4,200/t ($657/t), inclusive of 13% VAT. According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery closed at RMB 4,285/t ($671) on 19 Nov’21, an increase of RMB 36/t ($6/t) on a weekly basis.