Weekly round-up: Global billets market silent in absence of firm bids

The global billets market witnessed dull sentiments throughout the week due to several factors. These included the absence of firm buying interest from China, drop-in bids from South East Asia, and bid-offer disparities in the Indian market and limited deals thereof.

Market highlights

• Indian billets export market quiet: Indian billets exports market turned subdued this week amidst bid-offer disparities with recent tenders fetching bids lower than market expectations. An Indian mill had floated two ocean sale export tenders due on 23 Nov’21 for end-December shipments. The tender for 20,000 t of steel blooms (200x200mm, 3SP/4SP grade) did not elicit any response. while the other one, for 10,000 of steel blooms (150x150mm, SAE 1008 grade) was heard to have fetched bids at around $585/t FOB. However, it seems less likely that the mill will conclude the tender, given the bid-offer disparities.
• Iranian billets export prices decline: The Iranian billets exports market turned bearish in the second half of this week, with steel billets export prices falling sharply in the recently concluded deals. An Iranian mill has concluded an export deal for 40,000 t of steel billets, sources informed SteelMint. The deal was concluded at $565/t FOB for Dec’21 shipment. Iran’s billet export prices have fallen sharply by around $30/t against prices assessed towards the middle of this week. Lower bids have pulled down billet export prices, SteelMint notes.
• Vietnam’s billets export offers inch up: BF-route billets offers from the country inched up by $5/t on a w-o-w basis to $615/t FOB, according to SteelMint sources. No deals were heard to be concluded this week.
• SE Asia’s imported billets prices fall on limited trade: The South East Asian imported billets market remained subdued this week in the absence of firm bids. SteelMint’s bi-weekly assessment of imported billets (3 SP) into the Philippines stood at $640/tonne (t), CFR Manila, down by around $20/t, w-o-w. “The market is less active currently. For 5 SP billets, price indications are around $640-650/t, CFR,” said traders.
• Thailand’s billets import prices unchanged: Indicative imported billets offers into the country from various origins stood at $620/t CFR, unchanged, w-o-w.
• China’s billet prices rise towards the weekend: Steel billets prices in China’s Tangshan witnessed a rise of RMB 120/t ($19/t), w-o-w. Domestic billet prices stood at RMB 4,320/t ($676/t), inclusive of 13% VAT. According to data maintained with SteelMint, China’s SHFE rebar futures contract for May’22 delivery settled yesterday, 27 Nov’21, at RMB 4,104/t ($642/t).