SE Asia: Billet imports bids subdued on declining Chinese rebar futures

The imported billets market in South East Asia remained passive this week owing to declining rebar futures on the Shanghai Futures Exchange (SHFE). SteelMint’s bi-weekly assessment of imported billets for South East Asia currently stands at $690/tonne (t) CFR Manila, a drop of around $15-20/t, w-o-w.According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for Jan’22 delivery closed today, 22 Sept’21, at RMB 4,900/t ($767/t), decreasing by RMB 76/t ($12/t), d-o-d while yesterday’s futures had fallen by RMB 328/t ($51) d-o-d.

Market highlights

• Vietnam’s billets export market quiet: Vietnam’s billet exports market remained less active this week. According to SteelMint sources, BF-route offers are at $710/t, FOB and no deals were heard concluded this week.
• Thailand’s imported billet offers stable: Indicative imported billet offers into the country are hovering in the range of $720/t CFR from various origins, unchanged, w-o-w.
• Indian billet exports market sees limited trade: A state-owned Indian mill is reported to have concluded an unusual sized export tender of 15,000-20,000 t of steel blooms (240*350 mm, 4 SP) for Indonesia. According to market sources, the deal was concluded at around $670/t, FOB India. However, another state-owned steelmaker floated an export tender for the sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). According to market sources, the tender was heard to have got cancelled.Also, SAIL floated an export tender for around 18,900 t of prime mild steel non-alloy blooms from its IISCO Steel Plant in West Bengal. The cargo is scheduled for end-Dec’21 shipment. Buyers had to quote bids on SAIL’s website latest by 21 Oct’21. The offer must be valid up to 25 Oct’21. However, the tender was heard to be cancelled, sources informed SteelMint.
• Iranian billets export prices up in recent trade: The Iranian billets exports market has seen an uptrend in the form of the recently concluded billet export deals. Both domestic and export markets have shown some promising trade this week so far. An Iranian mill has reportedly concluded another package of 30,000 tonnes (t) of steel billets (150mm, 3SP) for exports a few days back, sources informed SteelMint. The shipment is likely to be scheduled for Nov’21. According to market sources, the deal was concluded at a price level of $645/t, FOB Iran.