SE Asia: Chinese rebar futures support imported billets prices, but trade subdued

South East Asian imported billets prices remained supported this week after witnessing a decline last week. The market was inactive on Tuesday, due to the national holidays. However, mid-week, the situation has not improved so far and buyers are still in wait-and-watch mode.

SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stood range-bound at $635-640/tonne (t), CFR Manila.

However, bids were heard at even lower price levels of $630/t CFR Manila, highlighted trade sources.

Hike in Chinese SHFE rebar futures has supported the prices. According to data maintained with SteelMint, the Chinese rebar futures contract for May'22 delivery settled at RMB 4,384/t ($688/t), a d-o-d rise of RMB 96/t ($15/t) on 3 Dec'21 and also a sharp rise of RMB 280/t ($44/t), w-o-w.

Market highlights

• Vietnam's billets export offers up: BF-route billets offers from the country increased by $10/t, w-o-w. According to SteelMint sources, BF-route offers are at $625/t, FOB and no deals were heard to be concluded this week.
  
  
• Thailand's billets import prices rise: Indicative imported billets offers into the country from various origins are hovering in the range of $640-650/t CFR, a rise of $25/t, w-o-w.
  
  
• Indian billets export market silent on limited bids: The Indian billets exports market turned silent this week, due to disparity in bids and expectations from Indian mills. "Currently, Indian mills are not very active but they are still expecting around $595-600/t FOB," highlighted a trade source. Bids from key importing nations have come down, he added. However, Indian mills are awaiting the outcome of fresh tenders as well. Leading State-owned steel producer Vizag Steel floated an ocean sale export tender recently for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) on FOB ST. delivery basis against an irrevocable letter of credit on payment-at-sight terms. The due date for the tender is 7 Dec'21, while the shipment has been scheduled latest by 10 Jan'22. Also, PSU steelmaker Steel Authority of India Ltd (SAIL) floated an export tender for 18,900 t of prime mild steel non-alloy concast billets from its IISCO Steel Plant in Burnpur, West Bengal. The cargo is scheduled for shipment on 31 Jan'22. The offer is valid till 6 Dec.
  
  
• Iranian billets export prices hit an 8-month low in a recent deal: Iranian billets export prices have declined sharply amid lower bids, following a recent deal concluded towards the latter part of last week. An Iranian mill concluded an export deal for 40,000 tonnes (t) of steel billets at $565/t FOB, for Dec'21 shipment. SteelMint's latest assessment of Iranian billets (3 SP) decreased by around $25/t w-o-w to $570/t FOB. More importantly, Iranian billet export prices have fallen to an eight-month low, with similar price levels last seen in Apr'21, as per SteelMint's data.