The global billets market remained less active this week amidst a decline in Chinese steel futures which resulted in a drop in bids for imported billets.
This week’s highlights:
Indian billet export prices rebounded with recovery in Chinese steel futures: After remaining mute for the last one week, the Indian billet exports market gained momentum tracking recovery in Chinese steel futures. The recent Indian billet export tenders floated by a primary mill managed to fetch improved bids.
An Indian steelmaker has floated an export tender for spot sale of 30,000 tonnes (t) of steel blooms (BF-route, 150x150mm, 3SP/4SP grade). The tender floated is against 100% advance payment terms with the due date being 11 Aug’21. The shipment is scheduled for Sept’21. According to market sources, the deal has been concluded at $625/tonne (t) FoB.
In another deal, an Indian steel mill has booked for export another parcel of 30,000 t of steel bloom (150x150mm) at around $625/t FoB (against advance payment). The shipment is scheduled within 45 days from the export agreement. Also, another tender for 10,000 t of steel blooms (200x200mm, 3SP/4SP grade) from the same mill was heard to have to fail to trigger active participation.
SE Asia imported billet market silent: The imported billets market in South East Asia remained subdued for yet another week in the absence of firm bids. SteelMint’s bi-weekly assessment of imported billets into the Philippines stood at $690-695/tonne (t), CFR Manila, stable w-o-w. However, the market seems to be silent, and buying interest has been affected owing to soaring Covid cases resulting in lockdown till 20 Aug’21.
Iran billet export market continues to remain quiet: Iran, one of the leading billet exporters, continued to remain quiet for yet another week due to the absence of allocations from mills owing to power outages.
“No offers or deals for billet exports were concluded recently. Power outages and volatility in Chinese steel futures have kept Iranian mills away from offering billets for exports,” informed Iran-based sources.
Iran’s steel exports, after getting impacted by Covid and export regulations, have seen an increase this year with the facilitation of export regulations. The export volumes of billets and blooms in the first four months of this Persian Year stood at 1.69 million tonnes (mn t), up by 26% compared to the corresponding period last year (CPLY).
Vietnam billet export offers stable: Vietnam mills kept their export offers stable this week. BF-route billet export offers were heard at $705/t CFR China.
Thailand billet price indications down: Indicative imported billet offers into Thailand are hovering in the range of $700-705/t CFR from various origins, down by around $10/t w-o-w.
China domestic billet prices up w-o-w: Steel billet prices in China’s Tangshan rose by RMB 30/t ($5/t) w-o-w. Domestic billet prices stood at RMB 5,110/t ($789/t), inclusive of 13% VAT on 13 Aug’21. According to data maintained with SteelMint, the Chinese rebar futures contract for Jan’22 delivery closed at RMB 5,482/t ($846/t) on 13 Aug’21.
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