This week, global billet prices dropped significantly. The price drop has been anticipated by the Chinese offerings in the SE Asian market, which is a traditional market for the billet export majors like India, Russia, and Iran. Also, sharply fallen global scrap prices strongly backed the event (global billet price drop). This week, the Philippines reported having bought sizeable billet volumes from China.
However, the marketers are not considering this (China billet offering) as a threat, as they believe China’s offering is situational. Currently, COVID has spread again in a few Chinese provinces. Hence, domestic demand has fallen and led China to offer in the export market.
CIS- The offers from CIS have come down significantly to $560-565/t FoB.
India- SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is $565-570/t, down by $10-15, against last week.
- Indian billet export market broadly remained silent in the absence of firm offers.
- However, we have seen few government-owned mills offering material for exports.
- Vizag Steel – a state-owned steelmaker, has floated 30,000 t prime concast blooms export tender for shipment scheduled in 1st week of Mar’21. The due date of the tender is 27 Jan’21. Its last tender was concluded at $575-580/t FoB in 1st week of Jan’21.
- Steel Authority of India Limited (SAIL), another Indian state-owned company, floated an export tender for 16,200 t (300 x 335 mm) non alloys concast blooms. The due date of the tender is 21 Jan ’21 and the shipment is to be delivered by the end-Feb ’21.
- We heard about an IF route billet deal for Sri Lanka. We could not confirm the details of this deal till the publishing time of this report. Another trade for induction grade billet for 5,000t was reportedly concluded at $580-589/t FoB Kandla
Iran- SteelMint’s bi-weekly assessment for Iranian billet is $560-565/t, FoB, down by $5 w-o-w.
- Iranian billet export prices have fallen slightly this week. However, we still didn’t witness any trades. A leading Iranian steel exporter has floated a billet export tender.
- The majority of Iranian mills are holding back from offering billet for exports, considering the price drop in the global market.
- Meanwhile, Esfahan Steel Company (ESCO), one of Iran’s leading steel exporters, floated a billet export tender for 20,000-30,000 t billets.
- The domestic billet market also remained silent, with negligible billets reported having traded against the offered quantity at the Iranian Mercantile Exchange (IME). This is being attributed to low demand as the re-rollers are having enough stock with them. It is a good situation for exporters and a concern for those who only cater to the domestic market.
- IME reported limited billet trades: This week, approximately 600 t billets were traded at the Iranian Mercantile Exchange (IME) at an average price of IRR 121,599/kg, down by IRR 1,614/kg. The offered quantity reported was around 195,000 t.
SE Asia- This week, SteelMint assessment for billet import in SE Asia is $590-600/t CFR, down by $5-10 against last week.
- After a few weeks, billet has started trading in the SE Asian import market. However, the buyers anticipating the prices to fall further continue remaining in the wait-watch mode.
- On the other hand, on sluggish domestic demand, China has entered the global billet market and is exploring opportunities. This week, the Philippines reported having bought Chinese billets at $590-600/t, CFR. The price drop was also governed by the fall in global scrap prices.
- Vietnam- The BF billet export offers from the country witnessed a marginal drop this week, and the offerings are currently standing at $585/t, FoB Vietnam (BF route). While IF route billets are offered at $580/t, FoB Vietnam.
- Thailand- Billet import offers in the country saw a sharp drop after China entered the SE Asian market. The offers in the country are seen hovering at $590-595/t, CFR, down by $10-15 w-o-w.
Chinese domestic billet prices remained stable- This week, the billet prices in the Tangshan market (northeast China) remained unchanged, against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,810/t ($588/t) in Tangshan, including 13 % VAT.
Global billet market snapshot-
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