Weekly: Global Billet Market Overview

The global billet offers from/in all the major billet trading nations remained range-bound this week. The increased global scrap prices have pulled up the global billet offers after a plunge during the start of the week.

After the sharp surge observed earlier in the week, the imported scrap prices to Turkey continue to move up in recent booking, on account of tight supply. With European and American recyclers operating partially with lesser workforce due to COVID-19 restrictions, the inflow of scrap to yards is very slow, with a low collection rate. Hence, unlike last month, suppliers are in no compulsion to clear their stock selling at low rates, resulting in the sharp hike in workable price.

The swift increase in COVID-19 cases has led to enforce the lockdown, in largely all major billet trading nations. This has resulted in trade silence in their respective domestic market. And hence, the steel mills across the globe are now largely dependent upon China for trades

CIS- CIS billet export assessment was reported to witness a marginal decline early this week and was seen at USD 325-330/MT, FoB Black Sea but later have moved up by USD 5/MT and is presently seen at USD 335/MT, FoB Black Sea. Trade participants expect mills to raise offers following a recent rebound in Turkish imported scrap prices by around USD 25/MT.

Iran- SteelMint's assessment for Iran billet export offers is at around USD 330-335/MT, FoB Iran, up by USD 5 against last week.

-- This week, Iran billet export offers were noted to witness a marginal rise. The global scrap prices have registered a tapered climb, as a result of which the Iran billet export offers remained supported.

-- The event has also lifted and constructed the expectations of the mills, which were ready to sell at between USD 315-320/MT, FoB Iran levels, till last week. In the current scenario, the mills are not willing to sell below USD 330/MT, FoB levels, SteelMint learned from market participants. In fact, one of Iranian billet export majors are eyeing for levels of USD 350/MT, FoB Iran for GCC countries.

India- Indian steel mills continue to remain active for billet export on restricted domestic trades amid lockdown.

1) SAIL - Steel Authority of India - a government of India company has floated an export tender for prime mild steel non-alloy concast billets. The tender quantity is reported to be 18,900 MT. The cargo will be shipped from the Haldia port. The tender put up is for size 125*125mm offered from the IISCO Steel plant. The last date for bid submission is 15 Apr'20 by 16:00:00 HRS [IST]. And the shipment is scheduled for 15 Jun'20.

2) Vizag Steel: The company has floated a tender in recent for 30,000 MT quantity, 150*150mm size, and 3SP Grade. The shipment is scheduled for 25 May'20. The tender due date is 15 Apr'20.

3) JSPL: The company is offering 30,000 MT billets for exports.

4) JSW: The company was reported to book 10,000 MT billets of size 165*165mm at USD 365-370/MT, on FoB basis.

SE Asia- SteelMint's assessment for SE Asia billet import is assessed at USD 365-370/MT, marginally down USD 5 against last week.

-- The billet import offers in the SE Asian regions have remained range-bound this week. Market participants expect increased global scrap prices supported the region's billet market sentiments.

-- Meanwhile, the billet import offers in Thailand from India were noted USD 370/MT, CFR levels. While billet export offers from Vietnam were noted at USD 380/MT, FoB levels. However, it is not a workable price in the current scenario.

China- The domestic billet prices in China are at RMB 3010/MT ex Tangshan (including VAT) marginally up by RMB 20 against last week.

Global billet price assessment:

Source: SteelMint Research