SE Asia: Billet import market silent on bearish sentiments, bids fall further

South East Asia's billet import market remained silent throughout this week due to muted trading activity. Bid-offer disparity, cheap Russian billet offers and the weakening in finished steel sales in the region continued to keep buyers out of the market.

SteelMint's bi-weekly assessment of billet (150x150mm, 3SP) imported by the Philippines currently stands at around $640/tonne (t) CFR Manila, down $35/t w-o-w. Some offers were also heard at higher levels of $655/t CFR Manila.

The volatility in China's SHFE rebar futures triggered a fall in import prices. According to data maintained with SteelMint, the SHFE rebar futures contract for October 2022 delivery closed at RMB 4,576/t ($682/t) on 27 May, witnessing a fall of RMB 62/t ($9/t) w-o-w. However, prices rose by RMB 71/t ($10/t) d-o-d.

Market highlights

• Vietnam's billet export offers rangebound: Vietnam's BF billet export offers remained rangebound at around $630-640/t FOB w-o-w. Sluggish demand for finished steel, falling prices of raw materials and domestic scrap continued to weigh on offers.
  
  
• Thailand's imported billet prices fall sharply: Indicative imported billet prices into the country were hovering around $635-660/t CFR, a sharp w-o-w fall of $40-65/t. Weak demand due to the onset of the monsoon season has pulled prices down.
  
  
• Indian billet export price indication drops further: Indian BF-grade billet export prices tumbled on falling bids and sluggish global demand. Bid-offer disparities kept trade activities limited. Market sources inform that Indian mills are still looking for price levels of around $610-630/t FOB. However, there is a gap between bids and offers. Bids were heard in the range of $570-580/t FOB.
  
  
• Iranian billet export market quiet: The Iranian billet export market remained silent throughout the week with no significant deals being concluded. Bid-offer disparities and cheaper Russian billet offers have dragged down billet export prices, SteelMint notes. Market participants have adopted a wait-and-watch stance amid falling bids and prices. Meanwhile, a major semi-finished steel exporter from Iran, Khouzestan Steel Company, has opened export tenders for 40,000-50,000 t each of steel billet and slab with the due date being 31 May. The shipments are likely to be scheduled for early August. SteelMint's assessment of Iran billet (3SP) export prices stood at $580/t FOB on 27 May, down $23/t w-o-w.