SE Asia: Imported billets trade remain slow amid bid-offers disparities, drop in SHFE futures

South East Asia's imported billets market has remained less active due to the price gap between bids and offers. The weakening of buy-side sentiments kept bids on the lower side and hence held back trade. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $810/tonne (t) CFR Manila, largely stable, w-o-w.

According to data maintained with SteelMint, China's rebar futures contract for October 2022 delivery on the Shanghai Futures Exchange (SHFE) closed today at RMB 5,019/t ($789/t), a sharp fall of RMB 141/t ($22/t), w-o-w.

Market highlights

• Vietnam's billets export offers down: Vietnam's BF-route billets export offers stood at $770/t FOB. However, no deals were heard concluded this week.
  
  
• Thailand's imported billets prices remain supported: Indicative imported billets prices into the country were hovering at around $820-830/t CFR. Also, offers from Iran were heard at around $785/t CFR. As per market sources, South-East Asia, especially Thailand, has become the most preferred market for Iranian billets exports at present due to better realisations and low demand in China, owing to Covid concerns.
  
  
• Indian ocean billets export market subdued: The Indian blast furnace (BF)-route billets export market has remained subdued over the last few weeks on lower bids and higher domestic realizations. No billets export tender from primary mills were heard concluded so far this week. However, around 6,000 t of induction furnace (IF-grade, 3sp) billet export deals were reported from Gujarat-based mills in western India, concluded towards the end of last week at around $800/t FOB Mundra Port. These are to be shipped this week. Also, another 10,000-t billets deal was heard concluded in the same week at around $802-805/t FOB Kandla, as per sources. Both the deals were concluded for an African country.
  
  
• Iranian billets export trade resumes after holidays: Iran's billets exports are expected to regain momentum as mills return to the market after a month-long Nowruz (Persian New Year) holiday. Iran's billets export prices moved up this week and mills are eyeing a further hike in the upcoming tenders. Meanwhile, Khouzestan Steel Company (KSC) has floated an export tender for 50,000 t of billets, the shipment for which is scheduled for the end-May, 2022. Another tender by ESCO was opened this week for 30,000 t of BF-route billets with the due date being the end of this week. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $720/t FOB on 8 April 2022, up $30/tonne (t), w-o-w.