The global billets market remained subdued this week amidst a sharp decrease in Chinese re-bar futures which weighed down sentiments in the imported billets market. On the other hand, extended lockdown restrictions in some parts of the world due to rising Covid cases also kept the market silent resulting in a drop in bids for imported billets.
This week’s highlights:
- Indian billet export market cools down: The Indian billet exports market turned silent this week after witnessing a few trade activities last week. A State-owned steelmaker had floated export tenders for 30,000 tonnes (t) of blooms (size 150mm, grade: 3SP/4SP) which were due on 18 Aug’21 for Oct’21 delivery with bid validity till 24 Aug’21. The tender fetched the highest bid at around $610-614/t, FoB levels, as per trade sources.
- Lockdown continues to impact the Philippines’ billet imports market: South East Asia’s imported billets prices witnessed a decline in recent deals concluded from Vietnam. SteelMint’s bi-weekly assessments of imported billet offers into South East Asia currently stand at around $660-665/t, CFR Manila, down by $30/t against last week. However, the market seems to be silent and buyers’ interest has been affected owing to soaring Covid cases resulting in the lockdown extending till 31 Aug’21.
- Iran’s billet export market silent in absence of allocations: Iran, one of the leading billet exporters, has continued to remain silent for yet another week. No movement has been reported in the market. In addition to power outages, the government-imposed lockdown to curb rising Covid cases has limited trade further. Iranian mills have kept away from quoting any offers for billet exports at present, SteelMint understands.
- Vietnam billet export prices decline: Vietnam’s leading steel mill, Hoa Phat, was heard to have lowered its billet export offers by around $40/t w-o-w amid subdued domestic sales on extended lockdown restrictions due to rising Covid cases. According to reliable sources, BF-route offers are at $660-665/t CFR China (equivalent to $640/t FoB) compared with $705/t CFR China assessed a week back.
- Thailand billet price indications down: Indicative imported billet offers into Thailand are hovering around $660/t CFR from various origins, down by around $40/t w-o-w.
- China’s domestic billet prices plunge RMB 230/t w-o-w: Steel billet prices in China’s Tangshan fell sharply by RMB 230/t ($35/t) w-o-w. Domestic billet prices stood at RMB 4,880/t ($752/t), inclusive of 13% VAT on 20 Aug’21. According to data maintained with SteelMint, China’s rebar futures contract for Jan’22 delivery closed at RMB 5,100/t ($785/t) on 20 Aug’21.
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