SE Asia: Billet import market remains sluggish amid bid-offer disparities

South East Asia's imported billet market has remained less active due to the gap between bids and offers. The weakening of buy-side sentiments and cheap Russian billet offers kept bids on the lower side and hence held back trade.

SteelMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $648/tonne (t) CFR Manila, down $5/t w-o-w.

Market highlights

• Vietnam's billet export offers down: Vietnam's BF billet export offers stood at around $625/t FOB, a decrease of $10/t, w-o-w.
  
  
• Iranian billet export prices fall to 5-month low: Iranian billet export prices witnessed a sharp drop following a deal concluded at the beginning of this week. An Iranian mill concluded an export deal for 30,000 t of steel billets. The deal was concluded at around $560/t FOB for June 2022 shipment. Meanwhile, another billet and slab export tender of 40,000-50,000 t each was concluded at $560/t FOB and $570/t FOB, respectively. Bid-offer disparities and cheaper billet offers from Russia have continued to drag down billet export prices to a five-month low, SteelMint notes. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $560/t FOB on 3 June, down $28/t w-o-w.
  
  
• Indian primary mills remain inactive in billet exports: Market sources opine that Indian mills are still looking for the price levels of around $610-630/t FOB. However, there is a gap between bids and offers. The bids were heard in the range of $560-570/t, FOB. However, western India-based steelmakers have recently concluded a deal of around 5,000 t of induction furnace (IF)-route billets for Africa. According to market sources, the deal was concluded at around $610-620/t on FOB basis.