Weekly round-up: Global billets prices rise despite volatility in Chinese rebar futures

Global billets prices witnessed an upward trend despite weak Chinese buying and volatility in rebar futures.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May’22 delivery closed at RMB 4,779/t ($755/t) on 18 Feb’22, a sharp w-o-w fall of RMB 126/t ($20/t). However, the same witnessed a rise of RMB 93/t ($15/t) d-o-d.

Market highlights

• Indian billets export trade subdued: The Indian billets export market saw less trading activity in the last one week amid volatile Chinese futures and bid-offer disparities. A couple of billets export tenders, for around 50,000 t, were floated last week for 150mm (BOF route, 4SP/5SP) but these remained inconclusive.However, a steelmaker concluded an export tender for 30,000 t of steel billets (150*150mm, 3sp/4sp) at $647-649/t on FOB basis. The shipment is scheduled for Apr’22, according to sources. The tender was floated against 100% advance payment terms.Another fresh spot bloom export tender for 30,000 t of steel billets (150*150mm, 3sp/4sp), which was due on 17 February, was heard to have received no bids.
• Iranian billets export prices further up: An Iranian mill concluded an export deal for 30,000 t of steel billets (130*130mm, 3SP) at $602/t FOB. Another deal for 30,000 t of billets (150*150mm, 3SP) was concluded at $605/t FOB. Meanwhile, a major steelmaker from Iran also concluded a high-grade billets (wire rod making grade) deal for around 20,000 t to a GCC country at $620/t FOB this week. “We may come up with a billets export tender next week. However, our expectations are at around $610/t FOB,” said a source from a leading Iranian mill. SteelMint’s latest assessment of Iranian billets (3 SP) exports increased by around $18/t w-o-w to $605-610/t FOB on 18 February.
• SE Asian billets import prices move up: Southeast Asian imported billets prices witnessed an uptrend this week despite volatility in Chinese rebar futures. SteelMint’s bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $700-705/t CFR Manila, a significant rise of around $15/t w-o-w.
• Vietnam’s billets export offers up: Vietnam’s BF-route billets export offers stood at $695/t FOB, an increase of around $5/t w-o-w. However, no deals were heard to have been concluded this week.
• Thailand’s imported billets prices stable: Indicative imported billets prices into the country hovered at around $690/t CFR, stable w-o-w.
• China’s billets prices fall towards the weekend: Steel billets prices in China’s Tangshan witnessed a sharp fall of RMB 110/t ($17/t), w-o-w. Domestic billets prices stood at RMB 4,630/t ($732/t), inclusive of 13% VAT, on 18 February.