Imported billet prices in the South East Asian markets dropped by around $40-45/tonne (t), owing to a drop in rebar futures on the Shanghai Futures Exchange (SHFE). The futures dropped by RMB 529/t ($82/t), week-on-week (w-o-w) to close at RMB 5,112/t ($795/t) on 21 May’21. However, earlier this week, an Iranian cargo was reported to have been sold to Thailand at a price level of $684/t FoB, equivalent to $715-720/t, CFR. After this deal, the falling futures pulled the buying indications to $690, CFR, while import offers are were seen hovering at $700-720/t, CFR.
On the other hand, the Chinese government is undertaking all measures to control prices. The government has assured it will restrain iron ore prices from rising, as this will not affect the margins of Chinese mills or reduce consumption. This has resulted in a drop in Chinese bids for imported billets to $670-680/t CFR from $715-725/t CFR earlier this week. Owing to this, a few traders are dumping their cargoes in the South East Asian markets, SteelMint learned from a trader.
Deals and Offers
Russia: No substantial offerings were witnessed from the Russian mills, except for one single offer which was heard at $680/t, FoB, sources told SteelMint.
Iran: Earlier this week, one of the leading Iranian exporters sold a 150*150mm billets cargo of 4SP grade to Thailand at $685/t, FoB Iran. SteelMint’s bi-weekly assessment for Iranian billets is around $690/t, FoB.
Vietnam: Blast furnace-route billet export offers from the country fell sharply by $40 to $760/t, FoB Vietnam.
Thailand: Imported billet offers in the country are at $710/t CFR, down by $40-50/t against last week.
SteelMint’s bi-weekly assessments of imported billet offers in SE Asia are currently at $695-700/t, CFR Manila, down by $45-50 against last week.
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