SE Asia: Imported billets market sluggish despite recovery in Chinese futures

The South East Asian imported billets market remained less active for yet another week despite a recovery in the Chinese rebar futures. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $630/tonne (t), CFR Manila, up slightly w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May'22 delivery closed at RMB 4,664/t ($735/t) on 14 Jan'22, a sharp w-o-w rise of RMB 138/t ($22/t) and an increase of RMB 31/t ($5/t), d-o-d.

Market highlights

• Vietnam's billets export offers flat: Vietnam's BF-route billets export offers stood flat at $620/t, FOB with no deals concluded this week.
  
  
• Thailand's imported billets offers range-bound: Indicative imported billets offers into the country are hovering in the range of around $620-630/t, FOB, stable w-o-w.
  
  
• Indonesia exports billets to China: In a recent deal, Indonesia's Dexin Steel exported steel billets to China at around $630/t on CFR basis, sources informed SteelMint.
  
  
• Indian billets export prices rise on improved trades: The Indian billets export market gathered momentum following a recovery in bids, Chinese steel futures and global price uptick. Around 120,000 t of steel billets were sold by an Indian mill to China this week via two spot billet tenders of 60,000 t each on 12 Jan and 13 Jan'22 at around $595/t and $596-598/t FOB, respectively. Another major steel mill from India concluded a special grade billets export deal for 20,000 t (165 mm and 150 mm, 5sp) to South-East Asia recently. However, the price could not be confirmed till the time of publishing this report. SteelMint's bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at around $600-605/t FOB on 14 Jan'22, up by $13/t w-o-w.
  
  
• Iranian billets export prices rebound to one-month high: Iranian billets export market picked up this week after the conclusion of a deal. One of the major billets exporters from Iran had opened an export tender for 30,000 t of billets last week, with the due date on 11 Jan'22. As per sources, the tender was concluded at $554-555/t FOB. SteelMint's latest assessment of Iranian billets exports (3 SP) increased by around $10/t w-o-w to $555/t FOB on 14 Jan'22, bouncing back to a one-month high level. The hike comes on the back of higher global billets export offers from other origins on improved bids and rise in Chinese rebar futures.