Global Billet market overview

This week, the global billet market observed an increase in prices. The price increase was primarily due to the increased steel futures in China. And increased Turkey's imported scrap prices supported the event. The imported scrap prices in Turkey have hit 2-months high in recent deals concluded. As Turkish steelmakers continue actively booking imported scrap cargoes, prices for the same moved up in the latest couple of bookings.

Also, the billet demand in the SE Asian region and other parts of the globe have started getting to normal, as most of the countries have gradually started lifting the lockdown. This has decreased the dependency of exporters on the Chinese market. Amid COVID-19 outbreak, the majority of the countries were facing dull domestic demand, and the countries had to shift their interest towards exports, and since China was the only economy that was recovering from the pandemic, the enormous billet/blooms volumes got routed towards the country. Hence, from the past couple of months, China was driving the global billet market.

CIS - The billet export offers from the region were noted to witness a rise of USD 10/MT, to reach USD 360-365/MT, FoB Black Sea. This week, numerous bookings to China were noted from the region.

India- SteelMint assessment for billet export offers from India is at USD 380-385/MT, FoB, up USD 7-10, against last week.

* This week, Indian mills were reported to book over 100,000 MT billets to China and SE Asia, deal details are shown in below table

Iran- SteelMint's assessment for the billet export offers from Iran is at USD 355-360/MT, FoB Iran, up USD 5 against last week.

* Following global uptick, Iran billet export offers have also increased this week. Iran was reported to book approximately 30,000 MT billets to SE Asia. The deal value was noted to be USD 380-385/MT, CFR, and the shipment is scheduled for Jul'20. With this deal, the billet export offers from the country have registered a marginal rise.

* On the contrary, the country's domestic billet prices have witnessed a decline with no trades reported on Wednesday; 03 Jun'20 amid national holiday. According to sources reported to SteelMint, approximately 124,000 MT billets were traded at IME, this week, at an average price of IRR 55,548/kg, down IRR 2692/MT against last week. In the second and third weeks of May'20, the Iranian government canceled all the domestic deals, as mills have violated the price guidelines. Hence, to meet the demand-supply gap, the quantity offered by the mills in the last week, was courteous enough. And consequently, the domestic market has witnessed a drop in traded quantity and price.

SE Asia- SteelMint assessment for billet import in SE Asia is at USD 385-395/MT, CFR levels, identical to last week.

* This week, the SE Asia billet import market was reported to witness decent trades, with offers being noted stable. India and Iran were noted to be the prominent billet suppliers for the consecutive week.

*Thailand was reported to book, approximately 60,000 MT billets from India and Iran. The deal value was noted to be USD 401/MT, CFR, and USD 385/MT, CFR respectively.

*The billet export offers from Vietnam witness marginal rise and is currently at USD 405/MT, FoB Vietnam, up USD 5, against last week. While domestic offers were reported stable and are at USD 395/MT, CIF.

China- The domestic billet prices in China are at RMB 3,330/MT ex Tangshan (including VAT), up RMB 50, against last week.

Global billet price assessment: