SE Asia: Billet import prices continue downtrend on weak sentiments

South East Asia's imported billet prices continued their downward trend this week amid low buying interest and subdued finished steel sales. SteelMint's bi-weekly assessment of billets (150*150mm, 3SP) imported by the Philippines currently stands at around $755/tonne (t) CFR Manila, a sharp fall of around $45/t w-o-w.

The volatility in China's SHFE rebar futures throughout the week also led to a fall in prices. According to data maintained with SteelMint, China's rebar futures contracted for October 2022 delivery on SHFE closed today at RMB 4,910/t ($745/t), a fall of RMB 54/t ($8/t) w-o-w. However, the same witnessed a rise of RMB 60/t ($9/t), d-o-d.

Market highlights

• Vietnam's billet export offers down: Vietnam's BF-route billet export offers stood at $710/t FOB, down $20/t w-o-w. Weaker market sentiments continue to weigh down offers. However, no deals were heard concluded this week even at comparatively lower offers.
  
  
• Thailand's imported billet prices fall: Indicative imported billet prices into the country were hovering at around $770-775/t CFR, a decrease of around $10-15/t w-o-w. Also, offers from Iran were heard at around $730/t CFR which is also lower compared to the previous offers.
  
  
• Indian ocean billet export trades subdued on weaker sentiments: Indian BF-grade billet export market remained inactive on low bids and weak demand. Iranian mills lower tariff rates for billet and China procuring material from Russia may impact Chinese demand from India. However, Indian mills may not lower their offers as they are getting decent realisations in the domestic finished steel market. SteelMint's bi-weekly price assessment for Indian billet exports (150*150mm, 3SP/4SP, BOF route) stood at around $750/t FOB on 29 April 2022, down by around $8/t w-o-w.
  
  
• Iranian billet export prices fall in recent trade: Iranian billet export prices have declined further on low bids, limited trade and the recent imposition of export tariffs. An Iranian mill has concluded an export deal for 40,000-50,000 t of steel billet. The deal was concluded at around $666/t FOB for the early-June 2022 shipment. Iran's billet export prices have fallen marginally by around $17/t as against the last concluded tender in mid-April. Meanwhile, another 40,000-50,000 t slab export tender was concluded by an Iranian mill at around $687/t FOB for the mid-to-end-June 2022 shipment. Iranian slab export prices have been corrected by around $60/t m-o-m. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $670/t FOB on 29 April 2022, down $7/t, w-o-w.