Weekly: Global Billet Market Overview

This week, all billet trading nations of the global billet market were reported to witness a rise in billet offers with massive trade volumes. The offers started witnessing a gradual rise since the week started, and as we approached the weekend, the offers had gone up sharply.

 The event was led by increased global scrap prices and was supported by the surged billet imported prices with a disparity; between bids and offers. The prices hike in China was primarily due to the Beijing political conference, which was held on 21-22 May’20. Post this conference the marketers were predicting that future markets could witness a rise as they believe the Chinese government would be announcing some stimulus packages for the industry.

 Also, the other billet import markets like Europe have gradually started getting into trade routines. And it is expected that this will ease the dependency of billet export majors like CIS Nations and India from Asian markets; especially from China.

 CIS Nations- The billet export offers from the region were noted to witness a sharp hike of USD 10-15/MT, to reach USD 355-360/MT, FoB Black Sea. This week, numerous bookings to China and SE Asia were noted from the region.

 Iran- SteelMint assessment for billet export offers from Iran is standing at USD 350-360/MT, FoB Iran, up USD 10/MT, against last week.

— Iranian billet export market was reported trade active, for the third consecutive week of May’20. The two billet export majors; SKS and KSC were noted to book approximately 60,000 MT billets (30,000 MT each).

— KSC concluded a 30,000 MT billet export deal to SE Asia at USD 350/MT FoB for Jun’20 shipment. The deal was concluded towards the beginning of this week.

— Following this the company has issued a fresh tender for 30,000 MT billets for Jul’20 shipment. The tender is yet to be concluded. The company is aiming to conclude the tender at USD 360-365/MT, on FoB Iran basis.

— SKS has concluded a deal for 30,000 MT billet to China at USD 350/MT, FoB. The deal was concluded towards the beginning of this week.

— Meanwhile, the domestic billet prices in the country have gone up sharply, after witnessing a couple of disappointing weeks. Yesterday; on 20 May’20, approximately 67,000 MT billets were reported to be traded on IME; Iranian Mercantile Exchange, at an average price of IRR 51340 /kg, up IRR 2930/kg, against the last average traded price.

— The Iranian government had canceled all the billet bookings, happened during the past two weeks, as the mills concluded the billet deals at higher price levels than the guidelines set by the government, SteelMint learned from trade sources.

 India- SteelMint assessment for billet export offers from India is standing at USD 375-380/MT, FoB India, up USD 5-10 against last week.

 –This week, an Indian mill was reported to conclude 60,000 MT billet deal (150*150mm, 4SP grade). The deal value was noted to be USD 375-378/MT, FoB, and the shipment is scheduled for the end of Jun’20.  It is expected, the cargo will be shipped to China, SteelMint learned from sources. Even before, at the end of the last week, the company had booked 60,000 MT billets at USD 365-370/MT, FoB.

 — An eastern India based private mill booked 22,500 MT special grade Billet at around USD 400/MT CFR China.

— Another Indian private mill concluded a billet deal to China at USD 380-385/MT, CFR of 30,000 MT quantity. The deal fetched higher value due to the port congestions issues.

 SE Asia- SteelMint assessment for billet import offers in SE Asia is at USD 380-390/MT, CFR levels, up USD 15 against last week.

 — This week, the SE Asian market was reported to witness a sharp hike in billet import offers amid increased global scrap prices. Also, a few high price level deals from CIS Nations have backed the event. Observing the global trend, the Iranian mills are also now aiming to conclude the deals at USD 360-365/MT, FoB Iran levels.

 — Formosa Ha Tinh Corporation (FHS)- Vietnam’s largest steel manufacturer of the country has announced its billet offers. The prices offered by the company are reported to be at USD 393/MT, CIF Ho Chi Minh, and USD 388/MT, CIF Hai Phong port.

 China-The domestic billet prices in China are at RMB 3,270/MT ex Tangshan (including VAT), up RMB 110, against last week. The sharp hike is primarily due to the political conference in Beijing held on 21-22 May’20. According to market sources reported to SteelMint, the conference would focus on China’s next Economic moves. It is also expected that the conference outcome could limit production and transportation activities with some stimulus packages. Thus, prices and sentiments in the country got positively driven.

 Global billet price assessment:

Source: SteelMint Research