Weekly: Global billet market overview

This week, the global billet market witnessed limited trades with a rise in offers from all the billet exporting nations. Hike in scrap prices has resulted in an increase in billet offers. Turkey imported scrap prices have strengthened to 3-months high in deals concluded this week. Tighter scrap availability has kept global scrap prices on the higher side.

CIS- The billet export offers from the region were noted to witness a rise of $5/t, to reach $365-375/t, FoB Black Sea. This week, numerous bookings to China were noted from the region.

India- SteelMint assessment for billet export offers from India is at $380-385/t, FoB, identical as last week.

* A 30,000 t billet export tender by an Indian state-owned mill this week failed to get the response and reported to have been canceled. The base price set by the company was around $389/t FOB India east coast, SteelMint learned from market participants.

* On the contrary, a private Indian mill has firmly kept the offers above $405/t CFR, and was sounded resistant to the price levels which are below $403/t, CFR a trade source mentioned during the conversation with SteelMint. The price resistance is possibly due to the reason that mill is booked till Aug’20, he added.

* Meanwhile, another private mill has floated an export tender for 40,000 t (approx.) billets and is eyeing price levels at $415/t, CFR.

Iran- SteelMint’s assessment for the billet export offers from Iran is at $365-375/t, FoB Iran, up $10-15 against last week.

* Recent trades have pushed up Iranian billet export offers by $10-15/t against last week. An Iranian mill was reported to book 30,000 t billets to China. The deal value was noted to be $370/t, FoB Iran, and the shipment is scheduled for Jul’20. After this deal, the mills have raised the offers and are aiming $375-380/t, FoB levels. However, during the conversation with SteelMint, a market participant mentioned “deals at $380/t, Fob price levels are very challenging to get since steel futures in China have declined. In fact, in the current situation, $370/t, FoB levels also seems little difficult to get”.

* Meanwhile, the domestic billet prices in Iran have also witnessed a rise. This week, approximately 78,000 t billets were traded at Iranian Mercantile Exchange with an average price of IRR 56,820/t, up IRR 1272, against last week. According to market sources reported to SteelMint, the price rise was primarily due to the demand-supply disparity.

SE Asia- SteelMint assessment for billet import in SE Asia have increased sharply and is at $400-410/t, CFR levels, up $10-15 against last week.

* This week, the SE Asia billet import market witnessed limited trades, after posing some trade active weeks. The trade silence in the region is primarily due to the price increase. For instance, the import prices in the SE Asian region are as below-

*From India- $410/t, CFR
*From CIS- $400-405/t, CFR
*From Iran- $390-400/t, CFR

* Following the global trend, the billet export offers from Vietnam witness marginal rise and is currently at $410/t, FoB Vietnam, up $5, against last week.

China- The domestic billet prices in China are at RMB 3,320/t ex Tangshan (including VAT), down RMB 10, against last week.

Global billet price assessment: