The global billet market saw a steep rise in prices for the third consecutive week. The tight scrap availability, leading to soaring global scrap prices, is intensely pulling the global billet prices. Turkish imported scrap prices continue to pose an upward trend in the recent deals concluded and are hovering at over 2.5 year high levels.
On the other hand, Yuan is continuously appreciating against the USD, from RMB 6.69 on 1 Nov ’20, yesterday it settled at RMB 6.53. Yuan’s appreciation has increased the import parity in China, which likely pulled the global billet prices. Chinese rebar futures have also kept the global billet prices supported.
CIS- Sizeable volumes are booked for the Philippines this week at a price level of $510-515/t, CFR levels for Feb ’21 shipments. The offers from the region noted having witnessed a sharp rise for the second consecutive week. SteelMint assessment currently stands at $490-500/t, FoB Black Sea, up by $20-25 against last week.
India- SteelMint’s assessment for Indian billet (150*150mm, BF route, FoB east coast) is at $485-490/t, FoB, up by $35-40 against last week.
- Indian billet export prices have soared in recent deals, going up by $35-40/t week-on-week (w-o-w) in recent export tenders hosted by a state-owned steel mill.
- This week, the mill reported having booked two billet cargoes (30,000 t each) at $475-480/t, and $485-490/t (spot sale), on an FoB India basis.
- Indian billet export prices are hovering at over a two-year high. According to data maintained with SteelMint, similar levels were last seen in Oct ’18,
Iran- SteelMint assessed Iranian billet export prices to be at $460-470/t, up by $25-30 against last week.
- Iranian billet export offers registered a steep rise this week on rising global scrap prices and Chinese rebar futures.
- A market source mentioned that Iranian mills are offering at $460/t, FoB levels. However, we didn’t witness any trades at increased price levels. Although, in conversation with a few of the leading Iranian mills, we learned that export tenders are likely floated by next Iranian week (Saturday-Thursday).
- Domestic prices rebound at IME demand remains sluggish: The Iranian domestic billet prices rebounded in a recent trade event hosted at the Iranian Mercantile Exchange (IME). Yesterday, over 150,000 t billets were offered against which only 41,250 t traded, at an average price of IRR 96,228/kg ($362/t), up by IRR 6,943/kg ($14/t) against last week.
SE Asia- This week, SteelMint assessment for billet import in SE Asia is at $500-510/t CFR, up by $25-30 against last week.
- SE Asian billet import prices continue to saw a rise for this week as well. The import offers have seen hovering between $510-520/t CFR levels, up by $15-20/t against last week. Sizeable bookings reported in the Philippines from Russia.
- Vietnam- The BF billet export offers from the country are seen stable at $510/t, FoB Vietnam levels, up by $15-20/t against last week.
- Thailand- Billet import offers in the country seen hovering at $510-515/t, CFR, up by $25-30/t w-o-w.
Chinese domestic billet price down by RMB 10 ($1.5) w-o-w- This week, the billet prices in the Tangshan market (northeast China) settled with a drop of RMB 10 ($1.5), against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,580/t ($548/t) in Tangshan, inclusive of 13 % VAT. The billet transactions were moderate, while finished steel prices have started softening by the end of this week.
Global billet market snapshot-
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