Weekly round-up: Global billets market picks up on active trade

The global billets market sentiments remained supported this week on the back of rising steel futures.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May’22 delivery closed at RMB 4,711/tonne ($743/t) on 21 Jan’22, a w-o-w rise of RMB 47/t ($7/t). However, the same witnessed a slight decrease of RMB 2/t ($0.32/t), d-o-d.

Market highlights

• Indian mills raise billets export offers: Indian mills were eyeing higher prices in exports in the recent round of tenders following the sharp increase in domestic prices. A state-owned domestic steelmaker floated an export tender for spot sale of 30,000 t of steel blooms (BF-route, 150x150mm, 3SP/4SP grade). The tender was floated against 100% advance payment terms. According to sources, the deal was concluded at $608-610/t on FOB basis. Indian billets export prices rose by around $12/t compared to prices seen in the last concluded tender in mid-Jan.
• Iranian billets export prices supported on active deals: Iranian mills remained active in the billet export market with a flurry of billets and slab export deals getting concluded this week. A leading Iranian steel mill floated a tender for billets and slabs of 30,000 t each. As per sources, the tender was concluded at $555/t and $560/t, respectively, on FOB basis. The shipment is scheduled for early-Mar’22. Another Iranian mill also concluded 30,000 t of billets (3SP, 150 mm) at $550/t FOB earlier this week for end-Feb’22 shipment. SteelMint’s assessment of Iran’s billets export (3SP) prices stood at $555-560/t FOB on 21 Jan’22, up by around $5/t, w-o-w.
• SE Asia imported billets prices supported: South East Asian imported billets prices remained supported this week. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $635/t, CFR Manila, up by $6/t, w-o-w. For 5SP billets, offers were heard at around $635-640/t, CFR Manila.
• Thailand’s imported billets offers rise: Indicative imported billets offers into the country were hovering in the range of around $640-650/t, FOB, up by around $20/t, w-o-w.
• Vietnam’s billets export offers unchanged: Vietnam’s BF-route billets export offers stood unchanged at $620/t, FOB with no deals concluded this week.
• China’s billets prices up towards the weekend: Steel billet prices in China’s Tangshan witnessed a marginal increase of RMB 10/t ($1/t) w-o-w. Domestic billets prices stood at RMB 4,440/t ($700/t), inclusive of 13% VAT, on 21 Jan’22.