SE Asia: Imported billet prices rise further on strong futures market

South East Asia's imported billet prices remained supported by the production cuts imposed by the Chinese government recently and the bullish rebar futures market. SteelMint's bi-weekly assessment of imported billets into the Philippines stands at $720/tonne(t), CFR Manila, up by $5/t w-o-w. A few offers were even heard at around $730/t CFR.

Thailand-based mills explore export options: With global billet prices increasing, Thailand-based mills have started exploring billet export options. They are exporting steel billets (EAF-route) to China at around $715-720/t CFR. Also, some deals of IF-route billets to China were reported at $700/t CFR.

Indicative imported billet offers into Thailand are hovering in the range of $715/t CFR from various origins. Thailand's steel billet imports in Jun'21 stood at 346,256 t. Billet imports rose by 38% m-o-m from 250,734 t in May'21. Imports increased to 1.85 mn t in the Jan-Jun'21 period as against 1.429 mn t in H1CY'20, up by 29% on year, as per data collected by SteelMint.

Vietnam mills active in exports: Vietnam's mills continued to remain active in the exports market. IF-route billet export offers were heard at around $680-690/t FoB Vietnam to the Philippines.

Indian mills fetch higher prices in billet export tenders: Indian mills continue to fetch higher prices in recent billet export tenders. A state-owned Indian steelmaker had floated an export tender for spot sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender floated was against 100% advance payment terms with the due date on 28 Jul'21. The shipment is scheduled for mid-Sept. According to market sources, the deal has been concluded at $628-630/t FoB.

An eastern India-based leading steel mill has concluded an export tender for 25,000 t of steel billets (150x150mm; grade: 3SP/4SP) for Sept'21 shipments, SteelMint learnt from sources. The deal has been concluded at around $650/t FoB (equivalent to $725/t CFR China). Hike in rebar futures amidst steel production cuts in China and lower steel output by Iranian mills due to power outages have kept demand for Indian billets firm in the global market.