SE Asia: Imported billets prices continue rally, deals from China concluded

South East Asia's imported billets prices continued an upward trend this week amidst ongoing supply concerns. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $800-830/tonne (t) CFR Manila.

The hike in Chinese SHFE rebar futures also supported prices. According to data maintained with SteelMint, China's rebar futures contract for May'22 delivery on the Shanghai Futures Exchange (SHFE) closed today at RMB 5,013/t ($788/t), up on week by RMB 60/t ($9/t). Also, the same witnessed a rise of RMB 68/t ($11/t), d-o-d.

Interestingly, China has resumed steel billets exports in mid-March with shipment for South East Asia, given the lower domestic realisations and absence of supply from CIS countries. Chinese mills have reportedly sold around 50,000 t of steel billets to SE Asia and East Asian countries in the past one week. A deal for 20,000 t of billets (150x150mm) were heard to be concluded at around $780/t FOB, sources informed SteelMint.

Market highlights -

• Vietnam's billets export offers down: Vietnam's BF-route billets export offers stood at $780/t FOB. However, no deals were heard to be concluded this week.
  
  
• Thailand's imported billets prices largely stable: Indicative imported billets prices into the country from China hovered at around $820-830/t CFR.
  
  
• Indian billets export market less active: Indian billets exports market dried up in the last one week amidst bid-offer disparities. The recent billet export tenders floated by Indian mills were heard to have fetched lower bids compared to what mills expected and hence were not concluded. "Indian mills were heard targeting $770-800/t FOB levels for 3 SP, 150mm billets, but due to low bids, the deal didn't materialise," said a market source. Bids received were heard in the range of $735-740/t FoB.