This global billet market witnessed limited trades amid the Golden Week holidays in China. The volumes were prominently booked for SE Asian destinations. Russia remained the prominent supplier during the week. On the other hand, Indian and Iranian mills broadly remained silent. We believe, the mills are in a wait & watch mode until the Chinese holidays considering that the market is likely to pose strong sentiments post-holidays.
CIS billet export offers down by $5- The offers from the region for a SE Asian destination noted at $440-445/t, CFR, down by $ 5 against last week. Approximately 50,000 t billet cargoes booked for the Philippines and Thailand from Russia at $445/t, CFR, this week.
Indian mill re-issued billet export tender-SteelMint assessment for Indian billet export offers (150*150mm) has dropped to $415-420/t, FoB from $430/t, FoB.
- The Indian billet export market remained silent for the second consecutive week.
- This week, few traders have seen offering Indian billets for Indonesia in the range of $425-428/t, CFR. However, no fresh offers from Indian private primary mills were heard.
- On the other hand, an Indian state-owned mill has reissued a 30,000 t (150*150mm, 3SP/4SP grade) bloom export tender for spot sale, against 100% advance payment terms. Amid high bid-offer disparity, the company canceled 60,000 t (30,000 t each) bloom export tenders, the bid expiry date for the same was 7 Oct’20. According to SteelMint sources, the tenders had received the bids at $410/t, and $415/t, on FoB India basis.
Iran billet export offers reported stable, domestic prices fall- SteelMint assessed billet export offers from Iran to be at $405/t, FoB Iran, unchanged against last week. The billet export offers from Iran saw a marginal dip this week.
- KSC floats 60,000 t billet and slab export tender: Khouzestan Steel Company (KSC), Iran’s leading steel exporter, has floated an export tender for 60,000t billets and slabs (30,000t each) for Nov’20 shipments. The company’s expectation is at $410-415/t, FoB for billets, and $445-450/t, FoB for slabs. The company remained the largest Iranian steel exporter in the first five months of the current Persian year at 0.6 mn t.
- Domestic billet prices at IME fall sharply: The domestic billet prices have witnessed a sharp drop of IRR 5,532/kg ($22/t) in a recent trade event hosted by the Iranian Mercantile Exchange (IME). The price drop is likely because of the recovery of IRR against $. According to SteelMint sources, On 6 Oct’20, approximately 82,400 t billets traded at an average price of IRR 93,612/kg ($376/t).
SE Asia billet offers remained unchanged- This week, SteelMint assessment for billet import offers in SE Asia is at $440-445/t, CFR, unchanged against last week.
- This week, SE Asian billet import market saw volumes from Russia. The price range of the deals is heard at $445/t, CFR. The bookings are prominently for the Philippines and Thailand. On the other hand, due to the Chinese Golden Week holidays, a high bid-offer spread witnessed, leading to limited trades.
- Vietnam- This week, the country’s export offerings stood at $435/t, FoB Vietnam
- Thailand-Billet import offers in the region noted to be at $440-445/t, CFR.
Chinese billet prices rebound sharply after holidays-The billet prices in the Tangshan market (northeast China) on 09 Oct’20, opened with a sharp rise of RMB 70 after the Golden week holidays. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,370/t ($495/t) in Tangshan, inclusive of 13 % VAT. SHFE rebar futures also witnessed a sharp hike of RMB 73 yesterday.
Global billet market snapshot-
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