SE Asia: Billet import prices continue to slide down, trade muted

South East Asia's imported billet prices continued their downward trend this week due to lack of trading activity. Buyers have switched into a wait-and-watch mode on more price cut expectations amid a continuous weakening in finished steel sales in the region.

SteelMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $638/tonne (t) CFR Manila, a drop of around $8/t, w-o-w.

The volatility in China's SHFE rebar futures has also pulled down prices. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,354/t ($649/t) on 17 June 2022, witnessing a huge fall of RMB 439/t ($65/t) w-o-w.

Market highlights

• Vietnam's billet export offers fall by $15/t w-o-w: Vietnam's BF-grade billet export offers stood at around $610/t FOB, a fall of $15/t as against the closing on 3 June 2022. However, no significant deal was heard to be concluded.
  
  
• Thailand's imported billet prices range-bound: Indicative imported billet prices into the country were hovering at around $620-630/t CFR, remaining range-bound w-o-w. Weak demand due to the onset of the monsoon and the price gap between seller and buyer has weighed on prices.
  
  
• Indian billet export market quiet in absence of firm bids: Indian BF-grade billet export prices remained stable with hardly any firm offers from India and weak demand from key importing nations. As per market sources, Indian mills are still looking for price levels of around $610-630/t FOB. No deal was heard this week so far. Indian billet export prices are expected to remain sluggish amidst lower bids and falling global prices. Also, with monsoons approaching in India, long steel demand may remain further subdued.
  
  
• Iranian mills float over 100,000 t semis export tenders, bids-offer disparities limit trade: Iranian semi-finished steel export market turned active after remaining silent for a few weeks amidst the news of power cuts. With export tenders of around 130,000 t of billets and slabs lined up by steel mills like Mobarakeh and Khouzestan Steel Company (KSC), trade is likely to resume after a pause. KSC has floated steel billet and slab export tenders of 40,000-50,000 t each with the due date being 20 June 2022. The shipments are likely to be scheduled for end-August. Another 30,000 t slab export tender was floated by Mobarakeh Steel Company (MSC) with the due date being 17 June and the shipment is scheduled for end-August. SteelMint's latest assessment of Iran's billet export (130*130mm, 3SP) prices stood at $550/t FOB on 17 June 2022, a decrease of around $10/t, w-o-w.