SE Asia: Imported billet prices fall to over one-year low in recent deal

South East Asia's imported billet prices witnessed a significant drop in a recently concluded tender. Lower bids, limited trade, and subdued finished steel sentiments in the region have continued to drag down billet import prices to over a one-year low, SteelMint notes.

A Vietnamese mill concluded an export deal for 20,000 tonnes (t) of BF-route billets at around $580/t CFR Manila, sources informed SteelMint. SteelMint's bi-weekly assessment of billets (150x150mm, 3SP) imported by the Philippines currently stands at around $585/t CFR Manila, a drop of around $57/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 4,189/t ($626/t) on 24 June 2022, witnessing a sharp fall of RMB 165/t ($25/t) w-o-w.

Market highlights

• Vietnam's billet export offers slump by $50/t w-o-w: Vietnam's BF-grade billet export offers stood at around $560/t FOB, a w-o-w decrease of around $50/t.
  
  
• Thailand's imported billet prices edge down: Indicative imported billet prices into the country were hovering at around $600/t CFR, a fall of around $25/t, w-o-w. Weak demand due to the onset of the monsoon and the price gap between seller and buyer has weighed on prices.
  
  
• Subdued bids weigh on Indian billet export market: Falling steel and scrap prices globally continue to weigh on Indian billet export prices. As per market sources, Indian primary mills are still looking for price levels of around $610-620/t FOB, considering the cost of production. However, the price levels are not in line with the current market scenario. Deals have dried up due to low market interest. A few private players are heard offering billets for export but prices are yet to be discovered. However, other market participants indicate that Indian billet export offers should be lesser than the $570-580/t CFR level for South East Asia. Meanwhile, State-owned Steel Authority of India Ltd (SAIL) has floated an ocean sale export tender for 18,900 t of prime mild steel non-alloy concast billet (125x125x9000/12000 mm, 4SP/5SP) as against irrevocable L/C without recourse to drawer L/C payable at sight terms. The due date for the tender is 27 June 2022 and the delivery is scheduled for 31 August.
  
  
• Iranian billet export prices fall to over one-year low: Iranian billet export prices witnessed a sharp drop in the recently concluded deals. Declining global prices, low bids, limited trade, and cheaper billet offers from Russia have continued to drag down billet export prices to over a one-year low, SteelMint notes. An Iranian mill concluded an export deal for 40,000-50,000 tonnes (t) each of steel billets and slabs. Both the deals were concluded at $530/t FOB for end-August shipments. Iran's billet and slab export prices have fallen by around $30/t and $40/t, respectively as against the company's last concluded tender at the beginning of June. Meanwhile, another export tender for 30,000 t of steel billets received bids at around $532/t FOB for July shipment. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $530/t FOB on 24 June, down around $25/t, w-o-w.