SE Asia: Imported billets prices trend up despite volatility in Chinese rebar futures

Southeast Asian imported billets prices witnessed an uptrend this week despite volatility in Chinese rebar futures. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $700-705/tonne (t) CFR Manila, a significant rise of around $15/t w-o-w.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May'22 delivery closed at RMB 4,779/t ($755/t) on 18 Feb'22, a sharp w-o-w fall of RMB 126/t ($20/t). However, the same witnessed a rise of RMB 93/t ($15/t) d-o-d.

Market highlights

• Vietnam's billets export offers up: Vietnam's BF-route billets export offers stood at $695/t FOB, an increase of around $5/t w-o-w. However, no deals were heard to have been concluded this week.
  
  
• Thailand's imported billets prices stable: Indicative imported billets prices into the country are hovering at around $690/t CFR, remaining stable w-o-w.
  
  
• Indian billets export trade subdued: The Indian billets export market saw less trading activity in the last one week amid volatile Chinese futures and bid-offer disparities. A couple of billet export tenders, for around 50,000 tonnes (t), were floated last week for 150mm (BOF route, 4SP/5SP). But, these remained inconclusive. However, a steelmaker concluded an export tender for 30,000 t of steel billets (150*150mm, 3sp/4sp) at $647-649/t on FOB basis. The shipment is scheduled for Apr'22, according to sources. The tender was floated against 100% advance payment terms. Another export tender for 20,000 t of steel billets (90*90mm, C20MMn Gr. A) also got concluded at $660-665/t on FOB basis towards the closing of last week by a state-owned company too. The shipment is scheduled for Apr'22. Vizag Steel floated a fresh spot bloom export tender for 30,000 t of steel billets (150*150mm, 3sp/4sp) due on 17 Feb'22. The tender outcome could not be received till the time of publishing this report.
  
  
• Iranian billets export prices further up in recent deals: An Iranian mill concluded an export deal for 30,000 t of steel billets (130*130mm, 3SP) at $602/t FOB. Another deal for 30,000 t of billets (150*150mm, 3SP) was concluded at $605/t FOB. Meanwhile, a major steelmaker from Iran also concluded a high-grade billet (wire rod making grade) deal for around 20,000 t to a GCC country at $620/t FOB this week. "We may come up with a billet export tender next week. However, our expectations are at around $610/t FOB," said a source from a leading Iranian mill. SteelMint's latest assessment of Iranian billets (3 SP) exports increased by around $18/t w-o-w to $605-610/t FOB on 18 Feb'22.