Weekly round-up: Global billets offers firm up post CNY holidays; bids yet to pick up

Global billets offers remained strong with the return of Chinese players into the market after the CNY holidays, although trader sources highlighted that buyers are yet to match up to higher offers.

The hike in rebar futures is also supporting prices. According to data maintained with SteelMint, Chinese SHFE rebar futures contract for May’22 delivery closed at RMB 4,905/t ($772/t) on 11 Feb’22, a significant w-o-w rise of RMB 76/t ($12/t).

Market highlights

• Less activity seen in India’s billets export market: Indian mills had raised billets export offers after the CNY holidays. The price rally in the domestic market, surge in export offers from the CIS and the hike in Chinese domestic billet prices prompted Indian mills to raise prices. However, the bids received were lower than expected. SteelMint’s bi-weekly assessment for Indian billets (150*150mm, 3SP/4SP, BOF route) for export stood at $645-650/t FOB on 11 Feb, down $3/t w-o-w.
• Iranian export prices rise in recent deal: With the surge in prices of global billets, Iran’s export prices also witnessed an uptrend. An Iranian mill concluded an export deal for 30,000 t at $590/t FOB for Apr’22 shipment to a Gulf Co-operation Council (GCC) country. SteelMint’s assessment of Iranian billets (3SP) export prices increased by around $32/t w-o-w to $590/t FOB on 11 Feb.
• SE Asian billets import offers rise on global rally: South East Asian imported billets prices witnessed an upward trend this week post Chinese New Year holidays. With the hike in global scrap and raw material prices, mills raised billet export offers but buyers were seen resisting at quoted offers. SteelMint’s bi-weekly assessment for imported billet (150*150mm, 3SP) into the Philippines currently stands at $690/t CFR Manila, up significantly by $20/t, w-o-w.
• Vietnam’s export offers surge post Tet holidays: Vietnam’s BF billets export offers stood at $690/t FOB, a sharp rise of around $50/t compared to offers floated towards end-Jan. Prices rose sharply after the market reopened after the Tet holidays.
• Thailand’s imported billets prices rise: Indicative imported billets prices into the country are hovering in the range of $680-690/t CFR, witnessing a sharp $40/t rise compared to prices in late-Jan.
• Offers from Indonesia edge up: According to market sources, offers from Indonesia’s Dexin Steel are at $700/t CFR Asia.
• China market sees weekend price surge: Steel billets prices in China’s Tangshan witnessed a sharp rise of RMB 240/t ($38/t) against the closing on 28 Jan before the Chinese New Year holidays. Domestic billets prices stood at RMB 4,740/t ($746/t), inclusive of 13% VAT, on 11 Feb.