SE Asia: Imported billets market silent on weak demand, volatile rebar futures

The South East Asian imported billets market remained passive this week while prices were mostly stable as Chinese buyers were absent and importers from the South East Asian region adopted a wait-and-watch mode.

SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stood range-bound at $640/tonne (t), CFR Manila.

Low domestic demand for longs and volatility in Chinese SHFE rebar futures has also affected the prices. According to data maintained with SteelMint, the Chinese rebar futures contract for May’22 delivery closed at RMB 4,322/t ($679/t), a w-o-w drop of RMB 62/t ($10/t) on 10 Dec’21. However, the same witnessed a rise of RMB 29/t ($4/t), d-o-d.

Market highlights

• Vietnam’s billets export offers inch down: Vietnam’s billets export market reported limited activity this week. According to SteelMint sources, the country’s BF-route offers were at $620/t FOB, a drop of $5/t, w-o-w.
• Thailand’s imported billets prices unmoved: Indicative imported billets offers into the country from various origins stood at $640/t CFR, stable, w-o-w. Also, no deals were heard to have been concluded this week.
• Indian billets export market subdued on lower bids: The Indian billets export market continued to remain less active for yet another week in the absence of firm bids. However, the State-owned Vizag Steel Plant has floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender was floated against an irrevocable letter of credit, as per RINL format, to be established within five banking days’ payment terms with the due date being 10 Dec’21. The shipment is scheduled within 45 days from the export agreement. Also, an Indian mill concluded a deal for around 20,000 t of billets (BF grade, 150*150 mm, 5sp) towards the end of last week at $645/t CFR Indonesia. SteelMint’s price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) was recorded at $590-595/t FOB on 10 Dec’21. Prices fell to an eight-month low as per data maintained with SteelMint. These price levels were last seen in Apr’21.
• Iranian billets export prices fall to 8-month low: The Iranian billets export market has continued to remain lackluster this week, as bid prices have declined further amid a lack of firm inquiries. SteelMint’s latest assessment of Iranian billets (3 SP) decreased by around $5/t w-o-w to $560/t FOB on 10 Dec’21, thereby touching an eight-month low level. Khouzestan Steel Company (KSC) has floated export tenders for 40,000 t each of steel billets and slabs. The shipment is likely to be scheduled for mid-Feb’22. As per SteelMint data, KSC’s previous export tenders for billets and slab were concluded at $588/t FOB and $565/t FOB respectively in end-Nov’21. Iranian steel mills are presently struggling with governmental restrictions regarding curtailment of natural gas usage, which has already begun impacting steel production volumes.