SE Asia import billet prices decline w-o-w amid bid-offer disparities

South East Asia's imported billets market sentiments still continue to downtrend amid lower demand for billets in the region. Sluggish trading activities due to bid-offer disparities kept the billets market silent.

Also, South East Asia's supply chain gap continues, due to a shortage of vessels and containers, which is driving up freight rates to unprecedented highs. Recent reports indicate that businesses across Malaysia, Thailand, Vietnam, and other neighbouring countries are facing significant challenges in securing shipping capacity, leading to disruptions and soaring costs.

BigMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $510-512/tonne (t) CFR Manila, a fall of around $9/t, w-o-w. Meanwhile, some billet (5SP) deals were heard to have concluded to Manila at around $505-510/t CFR.

Market highlights

• Vietnam's billet export offers remain stable w-o-w: Vietnam's BF-grade billet export offers stood stable w-o-w at around $500-505/t FOB with no active trades.
  
  
• Thailand's imported billet prices stable w-o-w: Thailand's imported billet offers dropped by $5-10/t w-o-w to stood at $515/t CFR.
  
  
• Indian billet export market awaits tender results: State-owned Vizag Steel (RINL) has floated an ocean sale export tender for 30,000 t of steel blooms (150x150 mm, 3SP/4SP) on FOB ST delivery basis against 100% advance payment terms. The last date for bid submission is 19 June 20'24 and delivery is scheduled for 5 August. India's billet exports stood at 39,308 t in May 2024.
  
  
• Iranian steel billet export prices surge in recent deal: The Iranian billet export market recorded billet export tender conclusions. An Iranian mill has concluded an export tender of 30,000 t of billets (3sp). The deal was heard to have concluded at $482/t FOB for July 2024 shipment, sources informed BigMint. Prices have increased by around $4/t as against a previous deal concluded in mid-May. According to BigMint's latest assessment, Iran's billet (3SP) export prices inched up by $4/t w-o-w to $482/t FOB on 12 June, 2024.
  
  
• China's steel billet prices fall w-o-w: Billet prices in Tangshan dropped significantly by RMB 30/t ($4/t) w-o-w to RMB 3,400/t ($467/t) on 14 June, 2024. Volatility in raw materials and finished steel prices, rebar futures throughout the week weighed on billet prices. Prices include 13% VAT. SHFE rebar futures (October, 2024 delivery) decreased by RMB 18/t ($2/t) w-o-w to RMB 3637/t ($501/t) on 14 June, 2024.