SE Asia: Imported billet prices rise, falling steel futures concern market

South East Asian imported billet markets witnessed sizeable trades, unlike last week. The billet cargoes are of Iranian and Indian origin and are likely to have been bought by Thailand and the Philippines, respectively.

This week, the SE Asian buying trends were not in line with the global price indications. The SE Asian buyers are bidding approximately $20 less than China.

SteelMint understands that SE Asian buyers are likely specifying the price horizons for their market. Furthermore, an international trader said: “In the current scenario, the price realisations in the SE Asian market are quite less than in China’s. Buyers are negotiating based on their respective domestic markets and not following the Chinese market.”

Imported billet offers in SE Asia were at $760/t CFR levels while buying indications were seen at $740/t CFR.

Deals and Offers

• Russia: Towards the beginning of this week, the price indications from the Russian mills were heard at $730/t FoB Vanino/Vlad. However, we didn’t hear any substantial offerings after the SHFE rebar futures slipped on 14 May’21 RMB 274/t ($43/t) day-on-day (d-o-d).
• India: It was recently heard that an Indian BF-route cargo recently got sold in the Philippines at $700-705/t FoB India for June’21 shipments.
• Iran: Esfahan Steel Company (ESCO), one of the leading steel exporters from Iran, sold 30,000 t of billets to SE Asia through a tender at the beginning of this week. According to SteelMint sources, the company concluded the tender at $645-650/t FoB Iran for June ’21 shipments.
• Vietnam: BF-route billet export offers from the country were heard at $800/t FoB, up by around $50 w-o-w. No IF-route offers were heard for this week.
• Thailand: Imported billet offers in the country were at $750-760/t CFR, up by $75-80 against last week.

SteelMint’s bi-weekly assessment for imported billets in SE Asia is currently at $740-745/t, CFR Manila, up by $40-45 against last week.

With the sharp decline in Chinese steel futures since the past two days, traders feel uncertain about the future. SHFE rebar futures Oct’21 contracts closed at RMB 5,641/t on 14 May’21, lower by RMB 274 ($43) d-o-d.