SE Asia: Billet import market quiet as bearish sentiments prevail

South East Asia’s imported billet market remained silent throughout the week amid low buying interest, Ramadan holidays and subdued finished steel sales. SteelMint’s bi-weekly assessment of billet (150*150mm, 3SP) imported by the Philippines currently stands at around $755/tonne (t) CFR Manila, stable, w-o-w.

“Just offers are moving around in the market, no firm bids. Markets may gain clarity from next week onwards”, said a trader source.

The volatility in China’s SHFE rebar futures and bid-offer disparities have kept trades at bay. According to data maintained with SteelMint, China’s rebar futures contracted for October 2022 delivery on SHFE closed today at RMB 4,734/t ($710/t), a fall of RMB 176/t ($26/t), w-o-w. Meanwhile, the same witnessed a sharp fall of RMB 189/t ($28/t), d-o-d.

Market highlights

• Vietnam’s billet export offers unchanged: Vietnam’s BF-route billet export offers stood at $710/t FOB, unchanged, w-o-w. Weaker market sentiments such as falling prices of raw materials and domestic scrap continue to weigh down offers. However, no deals were heard concluded this week.
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country were hovering at around $740-750/t CFR, a fall of around $25-30/t, w-o-w. Also, offers from Iran were heard at around $710/t CFR which is around $20/t lower compared to the offers from last week.
• Indian ocean billet export market subdued: Indian BF-grade billet export market remained almost at a standstill amid low and fluctuating bids against the backdrop of holidays and a fall in global scrap prices.
• Iranian billet export market silent during Eid holidays: Iranian billet export market remained silent this week owing to the ongoing Eid holidays which kept market participants on the sidelines. However, a few export deals were heard concluded just before the holidays. An Iranian mill has concluded an export deal for 40,000-50,000 t of steel billet. The deal was concluded at around $665/t FOB for the early-Jun’22 shipment. Amidst holidays, the COVID surge in China and cheaper Russian billet cargoes have kept Iranian mills away from placing offers this week, sources highlighted. The power supply shortage again getting surfaced to the Iranian steelmakers. As per the reports, the government is expected to announce some limitations soon to overcome the matter. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at $670/t FOB on 6 May, unchanged, w-o-w.