Weekly: Global billet market overview

The global billet prices dropped sharply on falling Chinese buying indications due to a decline in SHFE rebar futures. Another factor that contributed to bids dropped is, the Chinese government has assured it will restrain iron ore prices from rising, as this will not affect the margins of Chinese mills or reduce consumption. It is been done to control the prices. It has resulted in a drop in Chinese bids for imported billets to $670-680/t CFR from $715-725/t CFR earlier this week.

On the contrary, the Iranian billet prices remain range-bound in a couple of billet deals concluded for China and SE Asia.

Russia: No substantial offerings were witnessed from the Russian mills, except for one single offer which was heard at $680/t, FoB, sources told SteelMint.

India: SteelMint’s bi-weekly assessment for blast furnace-route billet (150*150mm) published on 21 May ’21 was $655-660/t FoB, down by $45-50/t against the previous assessment on 15 May’21.

• Indian billet export prices witnessed a sharp fall in a recently-concluded tenders for 60,000 tonne (t) of blooms (3SP/4SP). According to sources, the mill achieved a price level of $655-660/t, FoB India for end-July ’21 shipments.
• Freight to China is uncertain. The availability of billet vessels loaded from India is tight owing to Covid concerns. The freight cost is ranging between $60-80/t.
• Trade sources are very skeptical on the future trends considering the volatility in steel futures and spot prices which are driving bids for imported billets.

Iran: SteelMint’s bi-weekly assessment for Iranian billets published on 21 May ’21 was $685-690/t, FoB.

• The sharp plunge in Chinese steel futures has turned sentiments bearish in the Iranian billet exports market.
• KSC concludes billet and slab export tenders: Iran’s leading steel exporter, Khouzestan Steel Company (KSC), reported having concluded billet and slab export tenders floated for 60,000 t (30,000 t each). Billet tender sold at $690/t, FoB for June ’21 shipments with China as likely destination. While slab tender concluded at $780/t, FoB.
• In another deal concluded for South East Asia, the mill achieved a price level of $684/t, FoB Iran. The shipment is likely to be scheduled by June’21.
• Arfa Iron & Steel sells 30,000 t of billets to China: Arfa Iron & Steel, one of the leading steel exporters of Iran, reportedly sold 30,000 t of billets to China at $695/t, FoB for June’21 shipments. The deal was concluded at the end of last week, before the sharp decline in SHFE steel futures, SteelMint learned from sources.
• In conversation with a few more Iranian mills, SteelMint learned that they do not have enough allocations this week and, hence, are not chasing exports.

SE Asia: SteelMint’s bi-weekly assessments of imported billet offers in SE Asia are currently at $695-700/t, CFR Manila, down by $45-50 against last week.

• Imported billet prices in the South East Asian markets dropped by around $40-45/tonne (t), owing to a drop in rebar futures on the Shanghai Futures Exchange (SHFE).
• The Chinese bids, for imported billets to $670-680/t CFR from $715-725/t CFR earlier this week. Owing to this, a few traders are dumping their cargoes in the South East Asian markets, SteelMint learned from a trader.
• Vietnam: Blast furnace-route billet export offers from the country fell sharply by $40 to $760/t, FoB Vietnam.
• Thailand: Imported billet offers in the country are at $710/t CFR, down by $40-50/t against last week.

China: Chinese domestic billet prices fall by RMB 520/t ($81/t) w-o-w, owing to volatile SHFE rebar futures. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 5,150/t ($800/t) ex Tangshan including 13% VAT.

Global billet market snapshot: