Weekly round-up: Global billet prices stay supported despite limited deals

Global billet prices remained supported this week despite limited deals. Also, Shanghai Futures Exchange (SHFE) re-bar futures exhibited a volatile trend throughout the week.

Market highlights

• Indian billet export market awaits the outcome of fresh tenders: State-owned Vizag Steel floated a spot sale export tender for 30,000 tonnes (t) of steel blooms (150x150mm, 3SP/4SP grade). The tender was floated against an irrevocable letter of credit, as per RINL’s format, to be established within five banking days’ payment terms with the due date being 16 Sept’21. The shipment is scheduled within 45 days from the export agreement. Also, Vizag Steel has floated an ocean sale export tender for 20,000 t of billets (90x90mm, C20MMn Gr. A). The tender is due on 20 Sept’21 with delivery scheduled for 20 Oct’21. Buyers have to quote a minimum of 10,000 t for billets.
• SE Asia imported billet prices unchanged: South East Asia’s imported billet prices remained supported this week. However, not many deals were recorded. SteelMint’s bi-weekly assessment of imported billet offers from South East Asia stood unchanged at $695-700/t CFR Manila. However, the market turned quiet with sharp volatility seen in Chinese SHFE re-bar futures this week.
• Iran’s semi-finished export deals gain momentum: Iran, one of the leading billet exporters, gained momentum this week after remaining less active for the past few weeks due to power outages. An Iranian mill reportedly sold 25,000 t of steel billets through an export tender on 17 Sept, as per SteelMint reports. According to sources, the mill concluded the tender at $650/t FOB Iran. The shipment is likely to be scheduled for Oct-Nov’21.
• Vietnam’s billet export offers up: BF-route billet offers from the country inched up by $12/t on a w-o-w basis. According to SteelMint sources, BF-route offers were at $675/t, FOB. No deals were heard to be concluded this week.
• Thailand’s imported billet offers stable: Indicative imported billet offers into the country are hovering in the range of $710-720/t CFR from various origins, with no change, w-o-w.
• China’s domestic billet prices inch up towards the weekend: Steel billet prices in China’s Tangshan increased slightly by RMB 10/t ($1/t) w-o-w. Domestic billet prices stood at RMB 5,210/t ($806/t), inclusive of 13% VAT. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for Jan’22 delivery closed at RMB 5,478/t ($849/t) on 17 Sept’21, decreasing sharply by RMB 162/t ($25/t) w-o-w.