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SE Asia: Billet import offers continue to climb

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BigMint Bureau

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18 Dec 2020, 18:18 IST

SE Asia: Billet import offers continue to climb

Following the global trend, the billet import offers in SE Asia have posed a steep upward tick on steadily increasing global scrap prices and Chinese rebar futures. On the other hand, the Turkish steelmakers kept the global scrap prices supported as prices climbed to an eight-year high. Turkish steelmakers have actively booked numerous bulk cargoes throughout the week for the Feb '21 shipments on the influence of increased domestic demand. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $438/t CFR Turkey, up by $55/t on w-o-w.

However, we haven't heard any substantial volumes traded at the increased offers due to the wide bid-offer spread. The imported offers in the region have crossed $565/t CFR levels. On the other hand, bids are hovering between $535-540/t, CFR.

In a few of the SE Asian markets, the domestic billet is cheaper than the imported billet. For instance, the domestic billet prices in Indonesia are at $520/t, exw, excluding taxes. And hence, we feel it the most likely reason for a wide bid-offer spread.

Deals & offers-

CIS- The billet export offers from the region have jumped to $570/t, FoB Black Sea after Russia booked 10,000 t billets for Turkey $575/t, CFR (equivalent to $560/t, FoB).

India- This week, we haven't heard any substantial export offerings from the mills. However, an Indian state-owned mill had floated a 30,000 t bloom (150*150mm, 4SP grade) export tender for spot sale, and the base price for the same heard at $531/t, FoB. SteelMint's bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $530-535/t, up by $15-20 against last week.

Iran- Iranian billet export offers registered a steep rise for the second consecutive week and are currently hovering between $485-500/t, FoB. SteelMint's bi-weekly assessment for billet export offers from Iran is $485-500/t, FoB Iran, up by $15-20 against last week.

Vietnam- The BF billet export offers from the country reported having a sharp rise of $30/t, w-o-w and are currently at $560/t, FoB Vietnam levels

Thailand- Billet import offers are hovering at $540-550/t, CFR, stable against last week. However, buyers have seen bidding at $530/t, CFR.

This week, SteelMint assessment for billet import in SE Asia is $550-560/t CFR, up by $10 against last week.