SE Asia: Imported billets prices downtrend continues on bearish market sentiments

South East Asia’s imported billets prices continued their downward trend this week amid low buying interest and subdued finished steel sales. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $795/tonne (t) CFR Manila, a significant fall of $10/t w-o-w.

The volatility in Chinese SHFE rebar futures throughout the week also ensured fall in prices. According to data maintained with SteelMint, China’s rebar futures contract for October 2022 delivery on the Shanghai Futures Exchange (SHFE) closed today at RMB 4,964/t ($763/t), a fall of RMB 85/t ($13/t). Also, the same witnessed a sharp fall of RMB 94/t ($14/t) d-o-d.

Market highlights

• Vietnam’s billets export offers down: Vietnam’s BF-route billets export offers stood at $730/t FOB, down $20/t w-o-w. Weaker market sentiments continue to weigh down offers. However, no deals were heard concluded this week even at comparatively lower offers.
• Thailand’s imported billets prices fall: Indicative imported billets prices into the country were hovering at around $780-785/t CFR. But firm bids were heard lower by $30/t against current offers.
• Iranian billets export market quiet as mills await tariff clarity: The Iranian billets exports market has remained less active after witnessing a deal towards last week’s close. An Iranian mill concluded an export deal of 25,000 t of billets (150mm) at around $683/t FOB Iran for mid-June shipment. Prices corrected by $12/t compared to last week. Meanwhile, Khorasan Steel floated a 25,000-t billet (150x150mm) export tender last week with the due date being 18 April. As per sources, the tender was cancelled as the bids received were lower than the mill’s expectations. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at $670/t FOB on 22 April, down $25/t w-o-w.
• Silent offers from Russia: Some silent billet export offers from Russia were heard this week. Offers were comparatively lower than other origins and were heard hovering around $720-740/t FOB.