SE Asia: Bid-offer disparity continues with limited billet trades
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The bid-offer spread continues to exist in the SE Asian billet import market for this week as well on falling Chinese steel futures supported by sluggish finished steel demand and dropped global scrap prices. However, this week, the bids have moved up marginally, but not in parallel with the offers. The offers have reached to $440/t, CFR SE Asia levels, up by $10, against last week while the buyers are bidding at $420-425/t, CFR.
Despite the disparity, few deals in Thailand and Indonesia have concluded at a price level of $430-435/t, CFR.
The offers from the major exporting nations were as below-
- India- No new export offers were noted from the private Indian primary mills. However, Vizag Steel, a state-owned steelmaker, has floated two export tenders for bloom. Among the two, one is for spot sale for which the due date was 20 Aug'20 (30,000 t, 150*150mm). The due date for other tender is 24 Aug'20 (20,000 t, 200*200mm). Payment terms for both the tenders are 100% advance while the shipment schedule is by end-Sep'20/early-Oct'20. SteelMint's assessment for Indian BF grade billet (150*150mm) export stands at $410/t FoB India. The indicative offers from the country were at $415/t, FoB India.
- Iran- This week, the Iranian mills were seen firmly holding the offers at $400-405/t, FoB. However, the mills are likely to soften their export offers amid slow domestic demand.
- CIS- The offers from the region remain unchanged, against last week, and were at $ 398/t, FoB.
- Vietnam- This week, the country was offering billets at $430/t, FoB, up by $10 against last week. According to SteelMint sources, in the past 15-20 days, the country has booked approximately 250,000-300,000 t billets between price levels of $424-430/t, CFR.
SteelMint assessed the SE Asian billet import offers at $430-435/t, CFR, unchanged against last week.
