Weekly: Global billet market overview

The global billet market remains active on progressive Chinese demand amid production cuts (30-50%) in Tangshan. It (production cuts) has led to increased domestic billet prices and consequently the global billet prices. The domestic billet prices in China have spiked to a 12-year high level. Russia and Iran stood as the predominant suppliers for the week.

CIS: During the end of the last week, Russia sold sizeable billet cargoes to China at $605-610/t, CFR from the far East part of Russia. Post this deal, Black Sea offers witnessed a rise and are at $565-570/t, FoB levels. While, offers from Far East port are $585/t, FoB for June ’21 shipments.

India: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $555-565/t, up by $10-15 w-o-w.

• Indian billet prices remained supported on the back of rising Chinese domestic billet prices. Indian mills are highly active in the export market. For instance, Vizag steel has floated billet (65*65mm, 90*90mm) and bloom (150*150mm, 200*200mm) tenders for 100,000 t. The delivery is likely to be scheduled for mid-May ’21.
• During conversations with a state-owned mill, we learned that the export price indications are currently at $560-570/t, FoB. However, Steelmint witnessed no deals at these price levels. The last confirmed billet export trades from Indian BF grade billets concluded at $550-555/t FoB towards the end of the last week.

Iran: SteelMint’s bi-weekly assessment for Iranian billets is $560/t, FoB, up by $5-10/t, w-o-w.

• Iranian billet export prices surged in a couple of billet tenders concluded for China floated for 60,000 t (30,000 t each). The tenders fetched the price level of $559-560/t, FoB, up by $10 against previous bookings. SteelMint’s bi-weekly assessment for Iranian billets is $555-560/t, FoB, up by $5-10/t, w-o-w.
• Iran’s domestic demand opens flat after Nowruz: The domestic billet demand continues to remain steady in the second week of the current Iranian year, started from 21 Mar ’21. However, last week no trades were witnessed at the Iranian Mercantile Exchange (IME) amid Nowruz. According to SteelMint sources, this week, around 93,400 t billets were traded at an average price of IRR 107,057/kg ($413/t).

SE Asia: SteelMint’s assessment for billet imports in SE Asia is $625-630/t CFR, up by $15-20 w-o-w.

• Imported billet prices in SE Asia surged this week. Chinese domestic billet prices spiked with production dipping by 30-50% in Tangshan as pollution control measures were strictly enforced. This shortage resulted in global billet prices becoming buoyant.
• Due to this, the re-rollers in countries like Indonesia are preferring local billets. However, finished steel demand in Indonesia is sluggish, and struggling hard to revive.
• The government of the Philippines has imposed lockdown measures owing to increased COVID cases. However, last week the country imported sizeable billet volumes in the price range of $600-605/t, CFR. The current offers for imported billets are ranging between $620-635/t, CFR. While bids witnessed are at $610-620/t, CFR.
• Iran: Iranian billet export prices surged in a couple of billet tenders concluded for China floated for 60,000 t (30,000 t each). The tenders fetched the price level of $559-560/t, FoB, up by $10 against previous bookings. SteelMint’s bi-weekly assessment for Iranian billets is $555-560/t, FoB, up by $5-10/t, w-o-w.
• Vietnam: The BF route billet export offers from Vietnam are at $605/t FOB, up by $15. However, a leading Vietnamese mill was heard offering at $615/t, FoB Vietnam.
• Thailand: The imported billet prices in Thailand are in the range of $615/t, CFR, up by $10-15 w-o-w.

Chinese domestic billet prices hit over 12 years high levels: The domestic billet prices in Tangshan have hit over 12 year high levels. The emission cut by 30-50% amongst mills in Tangshan reeling its impact. However, the demand from downstream remained vibrant. The prices of commonly traded Q235 billet 150mm diameter reported at RMB 4,960/t ($756/t) ex Tangshan, including 13 % VAT, up by RMB 250 ($38) w-o-w.

Global billet market snapshot: