SE Asia: Billet import offers rise marginally

The SE Asian billet import market remained silent this week, on dropped Chinese rebar futures. During 8-10 Sep'20, futures came down by RMB 60. However, today, the futures gained momentum and witness an increase of RMB 25 to reach RMB 3,665/t. On the other hand, the import offers in the region have increased marginally against last week on rising global scrap prices, while bids were ranging from $430-440/t, CFR.

The bid-offer spread has broadened again, which saw a contraction in the last week.

Also, the domestic offers in some nations of the regions have reached par with the import offers. For instance, the domestic billet prices in Indonesia are at IDR 6700/kg ($450/t) ex-works, excluding taxes.

Offers-

• CIS- The offers from the region for a SE Asian destination saw a marginal increase and were at $450/t, CFR, up by $3-4, against last week
  
  
• India- The majority of the Indian primary mills have not been offering in the global market for this week as well amid better realizations in the domestic and the Nepal market. However, a state-owned mill has floated a spot sale tender for the exports of 30,000 t (150x150mm, 3SP/4SP) blooms. The shipment is likely to be scheduled for end-Oct'20. According to SteelMint sources, the company has set the tender base price at $427t, FoB India.
  
  
• Iran- The offers from the country were at $405-410/t, on FoB Iran basis, up by $5 against last week. However, the mills are looking to conclude the new deals in the range of $410-415/t, FoB Iran.
  
  
• Vietnam- This week, the billet offerings from the country have increased by $5 the country also booked a sizeable IF grade cargo at $450 CFR for China this week, SteelMint learned from sources.
  
  

This week, SteelMint assessment for billet import offers in SE Asia have moved up marginally and is currently at $440-445/t, CFR, up by $5 against last week.

Billet imports in Indonesia rise by 37% in Jul'20- The billet imports in Indonesia during Jul'20 have registered a ~37% m-o-m rise to reach ~160,000 t from ~117,000 t in Jun'20. India, Russia, and Oman stood the prominent suppliers of the month. However, Russian imports in the country have dipped by ~57%, while at the same time, the Indian imports increased by four-folds during the period under consideration. According to market sources, due to lower freight, India stood the preferred destination for Indonesian buyers.