SE Asia: Imported billets market bearish, prices fall further w-o-w

South East Asia’s imported billets market sentiments continue to weaken on the back of low demand. The weakness stemmed from a subdued finished steel market in the region that was hampered by unpleasant weather conditions.

SteelMint’s bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $540/tonne (t) CFR Manila, a fall of around $35/t w-o-w.

The volatility in China’s SHFE rebar futures also weighed on prices. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 3,589/t ($531/t) on 15 July 2022, witnessing a sharp fall of RMB 607/t ($90/t) w-o-w.

Market highlights

• Vietnam’s billet export offers fall w-o-w: Vietnam’s BF-grade billet export offers stood at around $520/t FOB, a w-o-w fall of around $15/t due to weak demand in the domestic market.
• Thailand’s imported billet prices edge down: Indicative imported billet prices into the country are hovering at around $560/t CFR, a decrease of around $10/t w-o-w. Weak demand and falling finished longs prices in the region due to the onset of the monsoon continue to weigh on billet import prices.
• Indian billet export market turns dormant: The Indian blast furnace (BF)-grade billet export trade continued to remain inactive and kept buyers at bay. As prices of long steel (rebar and wire rods) in India’s domestic markets have increased substantially, producers were reluctant to sell at lower bids. Thus, a couple of Indian players remained out of the billet exports market. Steel mills in India are not ready to sell at lower rates as they are getting better realization in the domestic market itself, sources also informed. Indian primary mills have raised rebar offers by around INR 1,000/t for mid-July sales. Therefore, no billet export tender was heard so far this week too.
• Iranian billet export prices stay supported in recent deals: Iranian steel billet export prices remained supported in the recently-concluded deals following the recovery in global scrap prices. An Iranian mill concluded an export deal for 20,000 t of steel billets, sources informed SteelMint. The deal was concluded at around $520/t FOB and the shipment is scheduled for 10 August. Meanwhile, another 20,000-t billet export deal was concluded at around $520/t FOB for mid-August shipment. SteelMint’s latest assessment of Iran’s billet (3SP) export prices stood at around $510/t FOB on 12 July, up marginally by around $5/t w-o-w.