Global billet market sentiments remained supported on the back of Chinese steel production cuts in H2CY’21 and rising steel futures. The highlights of this week are as follows:
Indian billet export prices hit two-month high in recent deal: An Indian state-owned mill concluded a deal for 30,000-tonne (t) of steel bloom (150x150mm, 3SP/4SP grade), scheduled for mid-Sept’21 delivery. The deal has been concluded at around $630-635/t FoB, as per sources. However, the consignment will head to a non-Chinese destination.
Importantly, following this deal, Indian billet export prices have risen to a two-month high compared to the previous levels, as per SteelMint reports. Indian mills have continued to remain active in exports. State-owned steelmakers SAIL and RINL (VSP) also floated export tenders. While RINL-VSP floated a tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade), SAIL’s tender was for 18,900 t of billets (150x150x12000 mm). Both the tenders expire on 26 Jul’21. The shipment from VSP is scheduled for mid-Sept delivery and SAIL’s is for end-Sept.
Iran billet export prices up; eased power curbs relieve mills slightly: Iran, one of the largest billets exporters in the world, is struggling with power outages as a result of which the billets exports market remained quiet this week too.
However, one deal was heard to have been concluded while the rest were scrapped as mills were worried on whether they would be able to meet the deliveries or not. Esfahan Steel Company (ESCO), a leading steel exporter from Iran, recently sold 30,000 tonnes (t) of the material to China, as per sources. The company concluded the tender at $650-655/t on FoB basis for Sept’21 shipment.
Owing to the Eid holidays in Iran, limited trading activities were recorded this week. Earlier, acute electricity shortage affected the domestic market. On the Iran Mercantile Exchange (IME), no trade happened this week either. However, around 89,600 t were traded at an average price of 1,32,462 Rial prior to last week.
The world’s tenth-largest steel producer, Iran, recorded a year-on-year decrease of 2% in its apparent steel consumption in the first three months of the Islamic year.
Philippines billet import offers increase: As per the latest information available with SteelMint, imported billet offers increased to around $715-720/t CFR Manila levels, up by $10-15/t against the beginning of this week. Few offers were even heard at $725/t CFR levels. However, no deals were concluded at higher offers. Increased futures prices in China led to the price increase. As per sources, a typhoon also affected the Philippines market this week.
Vietnam mills active in billet exports: Vietnam’s mills remained active in the exports market goaded by a dull domestic demand. According to SteelMint’s sources, BF-route offers from Vietnam are at $700/t CFR Manila. With domestic sales turning dull in Vietnam owing to Covid restrictions, the mills are likely to remain active in exports.
Earlier this week, deals of IF-route billets were reported at $690/t CFR Phillipines.
The Vietnam government has proposed an export duty of 5% on billets exports last week with an aim to ease domestic steel prices. In the latest update received, the Vietnam Steel Association (VSA) has petitioned the government against the imposition of the export tax.
Thailand billet import offers move up: Indicative imported billet offers into Thailand are hovering in the range of $710-715/t CFR from various origins, rising by around $30/t w-o-w.
Chinese domestic billet prices rise towards weekend: According to data maintained with SteelMint, the Shanghai Futures Exchange (SHFE) rebar futures Oct’21 contracts on 23 Jul closed at RMB 5,671/t ($875/t), up w-o-w RMB 120/t ($19/t). Tracking the hike in futures, domestic steel billet prices in China’s Tangshan region inched up to RMB 5,200/t ($803/t) inclusive of 13% VAT on 23 Jul’ 21. On a weekly basis, Chinese domestic billet prices have recorded a hike of RMB 60/t ($9/t).
Source: SteelMint Research
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