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 no trading activity. Buyers have adopted a wait-and-watch mode on more price cut expectations amid a continuous weakening of finished steel sales in the region. SteelMint's bi-weekly assessment of billets (150*150mm, 3SP) imported by the Philippines currently stands at around $670/tonne (t) CFR Manila, a fall of $38/t w-o-w.

The volatility in China's SHFE rebar futures and cheap Russian billet offers have kept deals at bay. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,638/t ($695/t) on 20 May 2022, witnessing a fall of RMB 32/t ($5/t) w-o-w. However, the same rose by RMB 59/t ($9/t), d-o-d.

Market highlights

• Vietnam's billet export offers down: Vietnam's BF-route billet export offers stood at around $670/t FOB, a sharp w-o-w drop of $25/t. Towards afternoon, prices fell further to around $640/t FOB. Sluggish demand, falling prices of raw materials and domestic scrap continue to weigh down offers.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country were hovering at around $700/t CFR, a drop of around $10/t, w-o-w. Also, offers from Russia were heard at around $650/t on CFR levels.
  
  
• Indian billet export price indications drop further: Indian BF-grade billet export price indications fell further on competitive offers from Indonesia, Iran and CIS. However, low demand has continued to weigh on trade. SteelMint's bi-weekly price assessment for Indian billet exports (150*150mm, 3SP/4SP, BOF route) stood at around $685/t FOB on 20 May 2022, down $10/t, w-o-w.
  
  
• Iranian billet export prices fall to three-month low: Iranian billet export prices witnessed a sharp drop following a deal concluded late last week. Declining global scrap prices, the Covid-19 upsurge followed by the lockdown restrictions in China and cheaper offers from Russia have dragged down billet export prices to a three-month low, SteelMint notes. An Iranian mill concluded an export deal for 40,000 tonnes (t) of steel billets. The deal was concluded at around $610/t FOB for mid-June 2022 shipment. Meanwhile, another Iranian mill has floated a 20,000-t billet export tender today with the due date being 23 May. The shipment is scheduled for mid-June. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $595/t FOB on 20 May, down $15/t, w-o-w.