Global billet prices surge post CNY holidays

The global billet market reported having witnessed sizeable trades, immediately after the Chinese New Year holidays (CNY). According to the deals confirmed by SteelMint, this week, approximately 200,000 t billets traded at increased price levels. Hike in global scrap prices supported the billet price hike. During conversations with market participants, we learned that seasonal demand in China is likely driving the global billet market and consequently pulling up the global billet prices.

CIS billet export offers surge- This week, CIS offers rose sharply by $15-20 and currently reported at $550/t, FoB, Black Sea.

Indian mills turn active for exports on subdued domestic sales: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $520-525/t, up by $10 w-o-w.

• Indian mills turn active in the global billet market as we approach the end of the Chinese New-Year holidays (CNY). Sluggish domestic demand has swung the interest of the majority of the Indian mills towards the export market.
• Confirmed billet export trades of 80,000t from India were recorded by SteelMint this week. In addition to this, SteelMint heard that around 65,000t billet export deals were under negotiations.

Iranian mills eye higher prices in upcoming tenders: SteelMint’s bi-weekly assessment for Iranian billets is currently at $520-525/t, FoB, up by $10-15 w-o-w.

• Iranian mills booked decent volumes as we approach the end of the Chinese New-Year holidays (CNY). The bookings were done for a SE Asian destination and Turkey. With these deals, billet export offers have now gone up and touched $530-535/t, FoB Iran level.
• Iran’s leading steel exporter, Khouzestan Steel Company (KSC) booked 30,000 t billets through a tender at $515-520/t, FoB Iran for a SE Asian destination. The shipment is likely to be scheduled by Mar ’21. The company is likely to float another export tender for 30,000 t billets, with a price expectation of $525-530/t, FoB Iran.
• In another export deal for Turkey, the price touched $530/t, FoB Iran levels. The deal was done for 10,000 t billets. However, we could not confirm other details, until the publishing time of this report.
• Domestic billet demand remains strong: In a recent trade event hosted at the Iranian Mercantile Exchange (IME), billet prices went up by IRR 3,651/kg. However, the volume traded for this week saw a drop of around 18,000 t. According to SteelMint sources, approximately 93,000 t billets were traded at an average price of IRR 105,292/kg ($403/t)

SE Asia billet import offers rise further- This week, SteelMint assessment for billet imports in SE Asia is $565-570/t CFR, up by $10-15 w-o-w.

• SE Asian imported billet market witnessed multiple bookings at the end of the Chinese New Year (CNY) holidays. India and Iran were the predominant suppliers, during the week. The bookings were largely done for Thailand and the Philippines. According to the deals confirmed by SteelMint, this week, over 80,000 t billets were booked at the increased prices. The post-CNY market is likely to back sellers, cutting-off the buyers’ anticipation of a drop in prices.
• Hike in global scrap prices and increase in Chinese steel futures supported the billet price hike.
• During conversations with market participants, we learned that seasonal demand in China is likely to rise and so will the domestic prices. This will create room for billet imports in China and consequently will pull-up the global billet prices.
• Thailand – This week, the imported billet offers in the country saw a rise of $10-15 and are currently seen at $555-560/t, CFR.
• Vietnam- The Vietnamese billet offers registered a sharp rise in a recent deal to China. According to SteelMint sources, Vietnam’s leading mill reported having booked around 30,000 t billets for China at $565/t, FoB. Post this deal, the BF route billets are offered at $565/t, FoB, while the IF route was at $550-555/t, FoB Vietnam

Chinese domestic billet prices open with a rise of RMB 210 ($32.5)- As foreseeable, the domestic billet prices in China witnessed a sharp rise post-Chinese New Year holidays (CNY). The rising Chines rebar futures pulled up the prices. According to SteelMint’s sources- the billet prices opened with a rise of RMB 210/t ($32.5/t) and reached RMB 4060/t ($629.4/t) levels. While today they (prices) are noted at RMB 4,140/t ($641.2/t), ex Tangshan, including 13% VAT.

Global billet market snapshot-