Weekly: Global Billet Market Overview

For yet another consecutive week, China kept the global billet market active. This week SteelMint noted, that country booked approximately 100,000 MT billets from India and Russia; 60,000 MT and 40,000 MT respectively each lot.

All major billet exporting nations are now largely dependent on China for the business as the domestic market of all these nations is slow or either lockdown amid COVID-19 outbreak

CIS- CIS billet export offers were reported to witness a marginal decline this week, and are now at USD 340/MT, FoB Black Sea, down USD 5 against last week. Significant deals were reported from Russia to China in the last couple of weeks at declining offers.

Iran- SteelMint’s assessment for Iran billet export offers is at around USD 330/MT, FoB Iran, down approximately USD 20 against last week.

— This week, Iran billet export market resumed trades after remaining silent last week due to holidays. One of the leading billet exporters of the country; KSC was reported to conclude a billet export tender. The tender was floated for 30,000 MT quantity and the shipment is scheduled for May’20. According to sources reported to SteelMint, the company has concluded the tender at around USD 353/MT FoB Iran basis and the destination was noted to be some GCC country.

— A SteelMint also learned, because of GCC proximity the deal managed to fetch the higher price. Vessel freight rate from Iran to Oman is around USD 20/MT. It is also worth noting that GCC countries have been importing billet at USD 360/MT, CFR levels in current market conditions, a market participant reported to SteelMint.

India- An Indian government mill was reported to conclude 30,000 MT spot billet export tender of 4SP grade and 150*150mm size recently. The deal value was noted to be approximately USD 355-360/MT, on FoB basis. And the shipment is scheduled by 30 Apr’20.

— Prior to this company had floated an ocean export tender for similar quantity, grade, and size; 30,000 MT, 4SP, and 150*150mm respectively. According to sources reported to SteelMint, the company has concluded the tender, earlier this week at around USD 355/MT, on FoB basis. Indian mills continue to remain active in exports due to dull domestic demand over ongoing lockdown.

SE Asia – SteelMint’s assessment for SE Asia billet import is assessed at USD 365-375/MT, down USD 5 against last week.

— For the consecutive week, the billet import offers in the SE Asian region witnessed a drop, as the intensity of the COVID-19 outbreak is getting strengthened across the region, with every passing day. The major countries of the region are largely lockdown except Indonesia.

— This week, billet offers from the Black Sea were noted to be at USD 365-370/MT, CFR Thailand. While that from India was reported to be USD 375/MT, CFR.

China- China continues importing billets. The billet import offers in China are at USD 360-365/MT, CFR levels.

— Meanwhile, the domestic billet prices in China are at RMB 3030/MT ex Tangshan (including VAT) down RMB 80 against last week.

Global billet price assessment:

Source: SteelMint Research