Weekly: Global Billet Market Overview

This week, the global billet market was reported trade as Iran billet export market resumed this week. Amid increased global prices, hike in offers from/in all billet trading nations was witnessed. The GCC and SE Asian region were noted to resume billet bookings. Amid pandemic, these regions; GCC and SE Asia, have booked billets after a long time. With these bookings, it is anticipated that trades could come to routine in other parts of the globe in soon time.

Meanwhile, China continues to import billets from India, Iran and CIS nations. According to market sources reported to SteelMint, the country has imported approximately 800,000 MT of billets during Mar’20 and this fig is expected to increase for Apr’20.

CIS- CIS billet export assessment was reported to witness a sharp rise and are at USD 345-350/MT, FoB Black Sea, up USD 10-15/MT against last week

Iran- SteelMint’s assessment for Iran billet export offers is at around USD 335-345/MT, FoB Iran, up USD 5-10/MTagainst last week.

— This week, Iran’s KSC has issued a tender for export of 30,000 MT billet and 30,000 MT slab for end May shipment, SteelMint learned from its sources. Major mills in Iran are eyeing for price levels of USD 350-355/MT, FoB Iran for billet export, considering recent rebound in Turkish scrap prices.

— The country was also noted to book to 60,000-70,000 MT billets to GCC and China. Each lot was of approximately 30,000-40,000 MT. While the deal value was noted to be USD 350/MT, FoB Iran for GCC location and 335/MT, FoB Iran for China. The difference in the deal value is largely due to the freight. China fetches high freight value; in the range of USD 20-25/MT, while GCC location fetches between USD 10-15/MT.

India- Steel Authority of India – a government of India company was reported to book approximately 18,000-20,000 MT billets to China of 200mm size. The deal value was reported to be USD 345/MT, FoB.

— An Indian private steel mill booked around 30,000 MT billet (165*165 mm) for export in last few days

— Vizag Steel: The company has floated a spot sale tender in recent for 30,000 MT quantity, 150*150mm size, and 3SP/4SP Grade. The shipment is scheduled for 25 May’20.

SE Asia- SteelMint’s assessment for SE Asia billet import is assessed at USD 370-380/MT, CFR up USD 5-10/MT against last week.

— The billet import offers in the SE Asian regions have witnessed a rise following a hike in offers from all major exporting nations like CIS, Iran, etc.

— A market participant from Thailand reported offers at USD 380/MT, CFR levels from CIS, up by USD 10/MT W-o-W.

— A billet booking was reported from Iran at USD 340/MT, FoB levels to SE Asia. The quantity and destination country could not be confirmed until the publishing of this report. Although, the hearsays about the quantity was approximately 20,000-30,000 MT.

— Following the global trend, the billet export offers from Vietnam were noted at USD 385/MT, FoB levels, up USD 5/MT against last week.

China- The domestic billet prices in China are at RMB 3070/MT ex Tangshan (including VAT) marginally up by RMB 60 against last week. Meanwhile, billet import prices in China are currently at USD 370-372/MT, CFR.

 Global billet price assessment:

Source: SteelMint Research