This week, SE Asian imported billet market witnessed limited trades on bid-offer disparity. Global billet offers rose after China announced the removal of import duty from May ’21 on non-ASEAN billets, as it would allow sellers to enjoy zero import tax. After this, the buying indications lifted to $670/t, CFR for Non-ASEAN billets on a substantial rise in futures and physical markets. Chinese bids have subsequently pulled up the buying indications from the SE Asian market, but not in parallel with the offers. The offers in the region are heard ranging from $680-690/t, CFR. However, bids were standing at $670-675/t, CFR.
Meanwhile, we also heard that an Indian cargo (130mm, 5SP grade) sold in the Philippines at $685/t, CFR. However, SteelMint could not confirm the seller and the quantity until the publishing time of this report. Apart from this, a deal for 10,000 t IF route billets from India was concluded for Philippines at $590 FoB for June delivery.
Deals and offers:
Russia: This week, we did not hear any substantial offerings from the Black Sea and Vanino port (Far Eastern Part of Russia). The mills are currently in a wait and watch mode as China removed the import duty on the ferrous products, including billets. “Russian mills have withdrawn their billet export interest for May production from Black Sea and Vanino port. They would return to the market only by mid-May ’21 for June FCR’s. They are in a wait-and-watch mode.” SteelMint learned from a trader.
Vietnam: The IF route billet export offers from the country heard having at $650/t, FoB. No, BF route offers heard for this week.
Thailand: The imported billet offers in the country witnessed having at $670/t, CFR, up by $10-15/t against last week. During Mar ’21, the billet imports in Thailand recorded at 0.44 mn t, up by 19% m-o-m. Oman, Japan, and Russia stood as the predominant suppliers during the period under consideration.
SteelMint’s bi-weekly assessment for Indian billets is currently at $675-680/t, CFR up by $20-25 against last week.
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