The global billets market remained silent this week in the absence of firm buying interest from China. On the other hand, extended lockdown restrictions in some parts of the world due to rising Covid cases also kept the market silent which weighed down sentiments in the imported billets market.
This week’s highlights:
Recent Indian billet export tender fetches dull response: The Indian billet exports market continues to remain silent so far this week after witnessing limited participation that resulted in cancelling of export tenders issued by companies. The recent Indian billet export tenders floated by mills saw almost no participation due to volatile Chinese steel futures. Also, demand concerns over steel production cuts in China weighed on bids.
An export tender was floated for 25,000 t of steel billets (65x65mm, grade: C20MMn Gr.) having due date scheduled for 23 Aug’21 and shipment in the first week of Oct’21. This tender was also heard to have fetched a dull response
Vizag Steel, a State-owned steel company, floated a spot sale export tender for 60,000 t of steel blooms (150x150mm, 3SP/4SP grade) against 100% advance payment terms with the due date being 31 Aug’21. The shipment is scheduled for the end of Oct. The buyer has to quote for a minimum quantity of 30,000 t.
Philippines’ billet import prices stable: South East Asia’s imported billets prices witnessed a drop in recent deals concluded from Vietnam. SteelMint’s bi-weekly assessments of imported billet offers into South East Asia currently stand at around, $670-675/t, CFR Manila. The market is still silent and buyers’ interest has been affected owing to soaring Covid cases along with speculations that the lockdown might be extended beyond 31 Aug’21.
Iran’s billet export market remains silent, domestic trade resumes on IME: Iran, one of the leading billet exporters, continues to remain quite since the last one month owing to power outages and other policy restrictions on exports. No offers or deals for billet exports were concluded recently.
The Mining Industries Office of the Government of Iran, softening its earlier stand, has lifted the restrictions barring around 84 steel mills from exporting long steel products. Further, the government extended export licenses for one more month – till Oct’21.
Vietnam mill concludes deal for the Philippines: Vietnam’s BF-route billet export offers were heard at around $630/t FoB Vietnam, a drop of $10/t w-o-w. A leading Vietnamese steel mill reportedly sold around 40,000-50,000 t of billets (BF route) to the Philippines at around $670-675/t, CFR. The shipment is likely to be scheduled for Sep-Oct’21, sources have reported SteelMint. Subdued domestic sales in domestic market have kept Vietnam mills active in exports.
Thailand billet import offers inch down: Indicative imported billet offers into Thailand are hovering around $650-660/t CFR from various origins, lower by $5/t w-o-w. Thailand registered a 19.31% y-o-y rise in steel billet import volumes in the first seven months of CY’21 (Jan-Jul’21). The volumes stood at 2.10 million tonnes (mn t) in Jan-Jul’21 as against 1.76 mn t in Jan-Jul’20, according to customs data compiled by SteelMint. Imports of the material in Jul’21 stood at 0.25 mn t, down by 24% y-o-y as compared to 0.33 mn t in Jul’20.
China’s domestic billet prices rise RMB 70/t w-o-w: Steel billet prices in China’s Tangshan rose by RMB 70/t ($11/t) w-o-w. Domestic billet prices stood at RMB 4,950/t ($764/t), inclusive of 13% VAT. According to data maintained with SteelMint, the Chinese rebar futures contract for Jan’22 delivery closed at RMB 5,222/t ($806/t) on 27 Aug’21, witnessing a significant increase of RMB 122/t ($19/t) w-o-w.
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