SE Asia: Billet import market sluggish amid bid-offer disparities

South East Asia’s imported billet market has remained less active due to the gap between bids and offers. The weakening of buying sentiments amid the subdued finished steel market in the region held back trade. SteelMint’s bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $575/t CFR Manila, a marginal decrease of around $5/t, w-o-w.

Billet offers by a few suppliers were heard to have strengthened post-hike in scrap offers. However, bids are yet to see a significant improvement.

The volatility in China’s SHFE rebar futures weighed on prices. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,196/t ($626/t) on 8 July 2022, witnessing a significant fall of RMB 69/t ($10/t), w-o-w.

Market highlights

• Vietnam’s billet export offers edge down w-o-w: Vietnam’s BF-grade billet export offers stood at around $535/t FOB, a w-o-w decrease of around $10/t. However, no significant deals were heard to be concluded at current offers.
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country are hovering at around $570/t CFR, a fall of around $30/t as against prices towards the end-June. Weak demand due to the onset of the monsoon and the price gap between seller and buyer continue to weigh on prices.
• Indian billet export market remains inactive: Indian blast furnace (BF)-grade billet export market remained inactive this week amid low demand and firm offers. The gap in bids and offers widened owing to increased prices in the domestic market. As per sources, steel mills in India are not ready to sell at lower rates as they are experiencing cost pressures. No billet export tender was heard so far this week. On the other hand, the domestic market has improved in the last couple of days.
• Iranian mills float 80,000 t export tenders: Iranian billet export market gained momentum after remaining silent last week. Steel mills like ESCO, SISCO and SJSCO floated around 80,000 t of billet export tenders this week. With this, trade is likely to resume after a short pause. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $510/t FOB on 5 July, up marginally by around $4/t, w-o-w.