SE Asia: Imported billets prices stay supported w-o-w, but trades muted

South East Asia’s imported billets prices remained supported this week. However, low buying interest amid subdued finished steel demand in the region and bid-offer disparities kept trades at bay, SteelMint noted.

On the other hand, market participants opined that due to a sharp recovery in global ferrous scrap prices, billet offers too may rise in the near term.

Hike in Chinese rebars futures has also supported prices. According to data maintained with SteelMint, China’s SHFE rebars futures stood at RMB 4,314/t today, a w-o-w rise by RMB 42/t ($6/t).

SteelMint’s bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $629/t CFR Manila, an increase of around $4/t w-o-w.

Market highlights

• Vietnam’s billets export offers remain unchanged: Vietnam’s BF-grade billets export offers remained stable at around $630-640/t FOB this week. Limited buying interest amid mixed sentiments in the finished steel market in the region has weighed on the export market.
• Indian mills active in export market: State-owned Vizag Steel has floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission for both tenders is 14 March, 2023 and the delivery is scheduled for 30 April. SteelMint’s latest assessment of India’s billets (150*150 mm, 3SP/4SP) export prices stood at around $602/t FOB on 10 March, an increase of $9/t w-o-w.
• Iranian billets export market remains active: Iranian steel mills continue to conclude billets export deals actively despite the obstacles that resulted from the issuing of new export policies by the country’s government. An Iranian steel mill has concluded an export deal for 50,000 t of billets at $573/t FOB. Another 30,000 t of billets export tender was concluded by the steel mill at around $572/t FOB for April, 2023 shipment. Prices have corrected upwards by around $16/t against the last concluded deal. Lesser number of firm offers currently in the export market and power curbs due to the harsh winter in the region have supported billets prices. SteelMint’s latest assessment of Iran’s billets (3SP) export prices stood at around $570-572/t FOB on 10 March, a marginal increase of $5/t w-o-w.