SE Asia: Imported billets market bearish amid volatile Chinese rebar futures

The South East Asian imported billets market remained bearish, influenced by the volatile Shanghai Futures Exchange (SHFE) rebar prices. SteelMint's bi-weekly assessment of imported billets offers from South East Asia currently stand unchanged at $670/tonne (t), CFR Manila, down by $20/t w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for Jan'22 delivery closed today, 29 Sept'21, at RMB 4,646/t ($726/t), decreasing d-o-d by RMB 66/t ($10/t) after witnessing an increase of RMB 57/t ($9/t) yesterday.

Market highlights

• Vietnam's billets export offers drop: Vietnam's billets exports market remained less active this week. According to SteelMint sources, the country's BF-route offers are at $680-690/t, FOB, a w-o-w drop of around $25/t.
  
  
• Thailand's billet price indications down: Indicative imported billet offers into the country are hovering at $680/t CFR from various origins, down by around $40/t, w-o-w. Thailand witnessed a sharp 81% m-o-m decline in its steel billets import volumes in Sept'21. The volumes stood at 0.06 mn t in Sept'21 as against 0.30 mn t in Aug'21. However, the volumes saw a 10% y-o-y rise in Jan-Sept'21 to 2.46 mn t.
  
  
• Indian billets export market sentiments down: The Indian billet exports market continued to remain silent following the sliding Chinese steel futures. This resulted in the absence of firm bids. An Indian PSU had floated a tender for 20,000 t of billets (90x90mm, C20MMn Gr. A), 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) with 26 Oct'21 as the due date. As per market sources, the tender has been cancelled perhaps on less active participation.
  
  
• Iran's billets exports market awaits outcome of new tender: The Iranian billets export market seems muted as no fresh deals have been concluded recently after the sharp drop in Chinese rebar futures prices. Iran's leading mill, KSC, has floated a tender for 40,000 t of billets and 40,000 t of slabs for Dec'21 shipments which are due towards the end of this week. Iranian mills were looking for $640-645/t FOB levels for billets exports, but the market is awaiting the tender outcome.