SE Asia: Imported billets prices rise on hike in Chinese rebar futures

South East Asian imported billets prices witnessed an uptrend this week after a sharp hike in Chinese rebar futures. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $655-660/tonne (t), CFR Manila, a significant rise of $22/t, w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May’22 delivery closed at RMB 4,829/t ($759/t) on 28 Jan’22, a significant w-o-w rise of RMB 118/t ($18/t). Also, the same witnessed a sharp rise of RMB 156/t ($24/t), d-o-d.

Market highlights

• Indonesian billets export prices rise: In a recent deal done earlier this week, Indonesia’s Dexin Steel exported steel billets (150mm, 5SP) to South Korea at around $658/t on CFR basis, sources informed SteelMint. Indonesian billets export prices have risen sharply by around $28/t compared to prices seen in the last concluded tender in mid-Jan’22.
• Thailand’s imported billets prices range-bound: Indicative imported billets prices into the country are hovering in the range of around $640-650/t, FOB, remaining range-bound, w-o-w.
• Indian billets export prices climb to 3-month highs: Indian billets export prices moved up by around $15/t in the deal concluded recently. With this, prices have rallied to a three-month high as similar price levels were last seen towards end-Oct’21, as per data maintained with SteelMint. A state-owned mill concluded 30,000 t bloom (150*150 mm, 3SP/4SP) tender this week on 100% advance payment basis. As per sources, the tender has been concluded at around $623-625/t FOB.
• Iranian billets export market less active: Iranian billets export market remained less active this week amidst news of sudden power cuts at a few mills. No firm deals for exports have been recorded by SteelMint so far. “Iranian steel mills are yet unclear on power curbs issues. Hence, no firm export offers or tenders have been witnessed this week,” an Iranian source told SteelMint. SteelMint’s assessment for Iran’s billets export (130*130mm, 3SP) prices stood at around $555-560/t FOB on 28 Jan’22, up by around $2/t, w-o-w.