SE Asia: Imported billets offers rise amidst absence of CIS offers, uncertainty

South East Asian imported billets prices witnessed a further increase this week despite the volatility in Chinese rebar futures and ongoing political conflict between Russia and Ukraine. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $720/tonne (t) CFR Manila, a significant rise of around $15-20/t w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May'22 delivery closed at RMB 4,617/t ($731/t) on 25 Feb'22, a sharp w-o-w fall of RMB 162/t ($26/t).

Meanwhile, no firm offers have been heard recently from CIS nations due to the ongoing Russia-Ukraine tension which has left the market participants perplexed. Buyers are in a wait-and-watch mode to get more clarity before making any decision.

Russia's steel billets exports stood at 14.98 million tonnes (mnt) in CY'21 with Mexico, Taiwan and Belgium being the key importing nations. Meanwhile, export volumes from Ukraine stood at 6.21 mnt in CY'21. Italy and Turkey were the key importing nations of steel billets from Ukraine.

Market highlights

• Vietnam's billets export offers rise: Vietnam's BF-route billets export offers stood at $715/t FOB, an increase of around $20/t w-o-w. However, no deals were heard to have been concluded this week.
  
  
• Thailand's imported billets prices up: Indicative imported billets prices into the country were hovering in the range of around $695-700/t CFR, up by around $5-10/t CFR, w-o-w.
  
  
• Indian billets export trade silent on slow demand: The Indian billets export market remained subdued with limited deals seen since the last one week. A couple of recently floated bloom export tenders by Indian mills were heard to have been cancelled due to dull participation. SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at $650/t FOB on 25 Feb'22, stable w-o-w.
  
  
• Iranian billets export market slows down amidst uncertainty: Iran's billets export market remained less active this week. Lesser firm bids from China, geopolitical conflict between CIS nations and change in Egypt payment system kept trade activities slow. However, an Iranian mill concluded an export deal for 30,000 t of steel billets (130*130mm, 3SP) at $603/t FOB recently this week. SteelMint's latest assessment of Iranian billets (3 SP) exports stood at $603/t FOB on 25 Feb'22.