SE Asia: Billets import offers rise amidst absence of CIS offers, rising rebar futures

South East Asian imported billets prices witnessed a further rise this week following a sharp uptick in Chinese rebar futures and absence of Russian suppliers due to series of sanctions on the country. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $735-740/tonne (t) CFR Manila, a significant rise of around $25/t w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May’22 delivery closed at RMB 4,901/t ($776/t) on 4 Mar’22, a sharp rise of RMB 284/t ($45/t), w-o-w.

Market highlights

• Vietnam’s billets export offers up: Vietnam’s BF-route billets export offers stood at $720/t FOB, an increase of around $5/t, w-o-w. Meanwhile, a deal for position cargo was heard to be concluded from Hoa Phat at $760/t CFR LO for the Philippines.
• Thailand’s imported billets prices rise: Indicative imported billets prices into the country were hovering at around $730/t CFR, up by around $30-35/t CFR, w-o-w.
• Indian mills lift billets export offers on supply concerns: The uncertain market conditions amidst the ongoing crisis and high domestic offers following a hike in coal prices have encouraged Indian mills to hike their billets export offers sharply this week. Meanwhile, state-owned Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) against 100% advance payment terms for which the delivery is scheduled for 20 Apr’22. The tender is heard to have received bids at around $720/t FOB. The bids fetched are higher by around $70/t against the last tender concluded in mid-Feb’22. However, tender conclusion confirmation remained pending till the time of publishing this report.
• Iranian billets export market slows down: Iran’s billets export trade has slowed down towards the end of the Iranian fiscal year. No deal was heard so far this week. SteelMint’s latest assessment of Iranian billets (3 SP) exports stood stable at $610/t FOB on 4 Mar’22. However, with trade tensions aggravating, billets export offers are likely to increase to $630/t FOB levels, said sources.