Weekly round-up: Global billet market stays flat during year-end holidays

After witnessing some momentum last week, the global billet market remained flat this week during the year-end holidays and volatile Chinese rebar futures prices.

According to data maintained with SteelMint, the rebar futures contract for May’22 delivery on China’s SHFE closed at RMB 4,315/t ($679/t) on 31 Dec’21, a sharp fall of RMB 204/t ($32/t), w-o-w. However, it witnessed a rise of RMB 33/t ($5/t), d-o-d.

Market highlights

• Indian billet export market quiet: The Indian billet export market remained inactive for yet another week. No seaborne BF billet export deal was heard concluded so far this week. Meanwhile, most sellers in the Indian market have adopted a wait-and-watch mode, waiting for the ongoing holidays to end. SteelMint’s bi-weekly price assessment for Indian billets (150*150mm, 3SP/4SP, BOF route) for exports stood at $600/tonne (t) FOB on 31 Dec. Prices have fallen to a eight-month low, as per SteelMint data. A state-owned steel mill had floated an ocean sale export tender for 20,000 t of steel billets (90x90mm) on FOB ST. delivery basis against an irrevocable letter of credit on payment at sight terms. The due date for the tender was 28 Dec. Owing to limited participation, the tender was cancelled.
• Iranian billet export market silent: The Iranian billet export market was silent with no confirmed deals heard so far this week. Limited bids and amid the New Year holidays kept market participants on the sidelines. “The market is relatively quiet with no firm offers heard. Iranian mills may come up with fresh tenders in the first week of Jan’22,” a source confirmed. SteelMint’s latest assessment of Iranian billet (3SP grade) for exports decreased marginally by around $2/t, w-o-w, to $545/t FOB on 31 Dec.
• SE Asia’s imported billet market at a standstill: The South East Asian billet import market remained subdued for yet another week as buyers adopted a wait-and-watch policy, waiting for the ongoing holidays to end. SteelMint’s bi-weekly assessment of imported billet (150*150mm, 3SP) into the Philippines currently stands at $630-635/t CFR Manila, stable w-o-w.
• Vietnam’s billets export offers unchanged: Vietnam’s BF billet export offers remained unchanged at $620/t on FOB basis and no deals were heard concluded this week.
• Thailand’s billet imports down 32% in Nov: Indicative billet import offers into the country were hovering at $635/t CFR from various origins, remaining unchanged w-o-w. Thailand’s billet imports in Nov’21 fell to 150,000 t from 220,000 t in Oct, a significant m-o-m decline of 32%, as per data Thai customs data.
• China billet prices fall towards the weekend: Steel billet prices in China’s Tangshan witnessed a fall of RMB 120/t ($19/t) w-o-w. Domestic billet prices stood at RMB 4,270/t ($684/t), inclusive of 13% VAT, on 31 Dec.