SE Asia: Imported billets market inactive on weak demand ahead of holidays

The South East Asian imported billets market remained sluggish on weak demand, although offers for the same were stable this week. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stood at $635/tonne (t), CFR Manila, stable, w-o-w.

Meanwhile, most of the buyers in the SE Asian region have already retreated ahead of the holidays and all eyes are on the Chinese market situation.

Market highlights-

• Vietnam’s billets export offers unchanged: Vietnam’s BF-route billets export offers stood unchanged at $620/t, FOB. No deals were heard to be concluded this week.
• Thailand imports Indonesian billets: In a recent deal, a parcel of 20,000 t of steel billets was exported by Indonesia’s Dexin Steel for Thailand at around $635/t on CFR basis, sources informed SteelMint. Thailand’s billet imports stood at 2.69 mn t in Jan-Oct’21. Oman was the largest supplier at 1.1 mn t, followed by Japan and India.
• Indian billets export market silent on lower bids: The Indian billets export market turned silent this week. No seaborne BF-route billets export deal was heard to be concluded so far this week. Meanwhile, Vizag Steel opened a tender yesterday for 20,000 t of steel billets (90x90mm, 5SP grade) with a due date of 28 Dec’21. The shipment is scheduled for the end of Jan’22. “Indian private mills continue to eye for higher price levels of around $620/t FoB for billet exports,” sources said. SteelMint’s bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at $600/t FOB on 24 Dec’21.
• Iranian billets export prices fall to eight-month low: Iranian billets export prices have witnessed a decline following a recent deal concluded late last week. Lower bids and limited trade have pulled down billet export prices to eight-month low, SteelMint notes. An Iranian mill has concluded an export deal for 30,000 t of steel billets which was concluded at around $550/t FOB for mid-Feb’22 shipments. Iran’s billets export prices have fallen by around $15/t compared to the last-concluded tender in end-Nov’21. SteelMint’s latest assessment of Iranian billets export (3 SP) currently stood at $545/t FOB on 24 Dec’21.

Outlook

The upcoming New Year holidays and absence of firm buying interest from China during the said period will likely keep seaborne billet trades on the lower side.