SE Asia: Imported billet offers edge up on supportive sentiments

South East Asia’s imported billet prices remained supported as the futures market remained bullish with Chinese buyers turning active for bookings this week. Mills have raised billet export offers to $690-695/tonne (t) CFR Manila against $680-685/t CFR Manila, a week ago, as per sources.

However, buyers’ bids are still at around $680/t CFR and thus deals are yet to be concluded at higher offers.

SteelMint’s bi-weekly assessments of imported billet offers in to SE Asia are currently at $683/t, CFR Manila, up by $7/t against last week.

• Vietnam billet export offers up by $15/t w-o-w: BF-route billet offers from the country increased by around $15/t, on a w-o-w basis, amidst increased rebar futures. According to SteelMint sources, BF-route offers are at $665/t FoB. However, as per sources, Vietnam is under lock-down which has kept sentiments bearish. Earlier, towards mid-week, a deal for 20,000 t Vietnam IF-route billets was concluded at $665/t CFR China.
• Indian mills raise offers: Private Indian steel mills are reported to be offering 150*150mm billets at around $680-690/t CFR levels for South East Asia and China, higher by $5-10/t from last week. Vizag Steel had floated a spot tender for 60,000 t of billets which was due today, on 9 Jul’21. The outcome of the tender could not be received while publishing the report.

SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF-route, FoB east coast) was recorded at $600/t, on 9 Jul’21, up by around $20/t against the last assessment made on 6 Jul’21.

• Thailand billet import offers supported: Indicative imported billet offers in to the country are hovering in the range of $680/t CFR from various origins.

According to data maintained with SteelMint, the Shanghai Futures Exhange (SHFE) rebar futures Oct’21 contracts on 9 Jul closed at RMB 5,428/t ($837/t), up d-o-d RMB 35/t ($5.5/t). On a weekly basis, the futures increased by around RMB 304/t ($47/t).

Tracking the hike in futures, domestic billet prices in China stood at RMB 5,020/t ($774/t) in Tangshan, including 13% VAT, climbing by RMB 20/t on d-o-d basis.