Despite rising freight, sizeable billet volumes reported having traded in the global billet market. The bookings done are broadly by the Philippines, Thailand, and Chinese mills from Russia, Iran, and a couple of ASEAN mills. India remained silent on increasing freight.
However, during conversations with international traders, we learned- Shipping companies are likely to soften the freight prices, owing to the gradual clearance of the congestion at Chinese ports. The freight hike has resulted in the cancelation of several deals.
CIS billet export offers fall: The Philippines-based mill reportedly booked 20,000 t billets (5 SP grade) from Russia (far Eastern port) recently. According to the SteelMint sources, the deal value was at $595-600/t, CFR Manila. However, Black Sea offers registered a w-o-w drop of $10-15/t and are currently at $570/t, FoB.
Recent Indian billet export tenders fetched dull response: SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is at $545-550/t, unchanged w-o-w.
- Indian billet export market remained broadly silent this week amid bid-offer disparity.
- The hike in freight rates is becoming a matter of concern, though shipping companies are likely to go soft on the freights- SteelMint learned from the traders.
- A couple of Indian state-owned mills are under tendering process for around 100,000 t billets (Apr ’21 shipments).
Iranian billet export trades pick-up: SteelMint’s bi-weekly assessment for Iranian billets is currently at $540-550/t, FoB down by $5-10 w-o-w.
- A couple of leading steel exporting mills reported having sold 60,000 t billets to China and a SE Asian destination in the price range of $542-550/t, FoB.
- Domestic billet demand decrease: This week, the Iranian Mercantile Exchange witnessed limited trades amid decreased demand. According to SteelMint sources, approximately 55,000 t billets were traded at an average price of IRR 107,074/kg ($433/t), up by IRR 986/kg ($4/t). The offered quantity was around 94,000 t.
Increasing COVID cases dampen market sentiments in the Philippines: SteelMint’s assessment for billet imports in SE Asia is $590-600/t CFR, unchanged, against last week.
- This week, sizeable billets traded in the SE Asian imported billet market.
- The bookings broadly were from Russia, Iran, and a couple of ASEAN nations, with the Philippines and Thailand as the likely destinations. The deal values ranged from $590-600/t, CFR.
- Post these deals, buying bids saw a drop of $5-10/t, owing to volatile Chinese rebar futures.
- Anticipation is that market sentiments might go bearish in the region, as a few nations like the Philippines are likely to impose the lockdown amid increasing COVID cases. SteelMint learned this from international and regional traders.
- Vietnam billet export offers fall by $20 w-o-w:A leading Vietnamese mill booked around 10,000 t billets within the ASEAN at $595-600/t, CFR at the end of the last week. The billet (BF route) export offers from Vietnam are now at $580/t, FoB, down by $15-20 w-o-w.
Chinese domestic billet prices continue to rise on production cut: This week, Chinese domestic billet prices settled with a rise of RMB 50 ($8). The billet transactions were moderate while finished steel prices remained stable. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,480/t ($688/t) in Tangshan, including 13 % VAT.
Global billet market Snapshot
Leave a Reply