Weekly: Global Billet Market Overview

This week global billet market enormous trade volumes. However, the export offers from all the billet export majors witnessed a drop over ongoing Labor Day holidays. Although, billet prices are expected to hike post holidays on a drop in inventory levels in China. Since currently the global billet market is largely driven by China, thus, inventory drop in the country could be a prime disruptor for a price correction.

CIS- Saudi Arabia was reported to book around 100,000 MT billets at USD 360/MT, CFR. However, billet import offers from the region witnessed a sharp decline and are currently at USD 340/MT FoB, down USD 15-20 against last week.

Iran- SteelMint’s assessment for Iran billet export offers is now at USD 350/MT, FoB Iran, identical as last week.

— KSC, one of the leading billet exporters of the country were noted to book 30,000 MT billets to SE Asia at USD 345-350/MT FoB Iran, and the shipment is scheduled for early Jun’20.

— Lower bids from buyers continue to keep Iran billet export offers under pressure. For the consecutive week, the Iranian billet export market was noted to be actively functional over the marginal rise in the export offers.

— The lockdown has been lifted in Iran, post which the mills are enjoying trades in both the markets; domestic and export. However, the realizations are better in the domestic market. On 29 Apr’20, 35,000 MT billets have been traded in the Iranian market with an average price of IRR 45730/kg. Pasargad, Chadormalu, and SKS were the major sellers reported, SteelMint learned from reliable trade sources.

India- India was witnessed to be actively functional in the global billet market, this week. The country was noted to book approximately 180,000 MT billets this week, majorly to China. Both public and private sector mills were reported to be actively floating offers, as per sources. India is largely under lockdown and amid sluggish domestic demand, the mills are largely dependent on the exports.

— A private mill was reported to book 100,000 MT billet to China at USD 365-375/MT CFR and the shipment is scheduled for Jun’20, as per sources.

— A govt. the owned mill had floated an ocean export tender for 60,000 MT billets for spot sale. If sources are to be believed, the company partially concluded the tender i.e. 30,000 MT at around USD 350/MT, FoB for end May shipment. For the rest unsold quantity of 30,000 MT, the company has issued the fresh spot sale tender.

— Another govt owned company was noted to book 50,000 MT billets to China at USD 355-360/MT, on a FoB basis, at the end of the last week.

SE Asia- SteelMint assessment for billet import offers in the SE Asian region is at USD 365-370/MT CFR, down USD 5-10 against last week.

— Billet import offers to SE Asia observed a decline against last week. Apart from the disparity in bids & offers, the other factors which supported in pulling down the offers in the region were; fallen global scrap prices and the Labor Day holidays.

— This week, the SE Asian country was reported to book 30,000 MT billets from Iran at USD 345-350/MT, on a FoB basis. And thus, the offers in the region witnessed an acute decline, after this deal.

— Meanwhile, the billet import offers in Thailand were noted to be USD 370/MT, CFR from India. While the same was reported to be at USD 365/MT, CFR from CIS Nations. Whereas, the bids are approximately USD 360/MT, CFR. This has created a disparity between bids and offers.

China- The domestic billet prices in China are at RMB 3080/MT ex Tangshan (including VAT), up RMB 10, against last week. Meanwhile, billet import prices in China are currently at USD 365-375/MT, CFR.

 Global billet price assessment:

Source: SteelMint Research