Weekly: Global Billet Market Overview

This week, the global billet market was reported with massive trade volumes. The bookings were largely made by China. CIS Nations, India, and Iran were the prime exporter. However, this week, Vietnam came out as a surprise supplier, booking a sizeable billet volume to China.

Talking on the price front; the export prices from/in all the major billet trading nations remained largely stable, except for India as few India mills were noted to offer in the range of USD 390-400/MT, CFR levels.

CIS Nations- The billet export offers from the region were noted to have at USD 340-345/MT, FoB Black Sea, up USD 5 against last week. This week, numerous deals were noted from the region. According to sources reported to SteelMint, over 100,000 MT billets were booked to China between USD 370-375/MT, CFR.

Iran- SteelMint assessment for billet export offers from Iran is standing at USD 345/MT, FoB Iran, majorly stable against last week.

-- This week, the Iranian billet export market was reported trade active as the country books couple of billet lots to some East Asian country and China.

-- A deal for 10,000 MT billet export was concluded for Jun'20 shipment. The deal value was reported at USD 345/MT, FoB

-- In another deal reported for 30,000 MT billet for Jul'20 shipment at around USD 345/MT, FoB.

-- Post these deals, the mills are now targeting the price levels close to USD 350/MT, FoB, for fresh deals, trade sources reported to SteelMint.

-- Meanwhile, the Iranian domestic market was noted to have a disappointing week as no billet trades were reported over the Iranian Mercantile Exchange (IME). According to trade sources reported to SteelMint, the government has canceled all the billet deals during the week because the mills sold the billets at higher price levels than the government.

India- SteelMint assessment for billet export offers from India is standing at USD 355-365/MT, FoB Iran, majorly stable against last week.

-- This week, over 80,000 MT billets were reported to be booked by China.

-- Steel Authority of India Limited (SAIL), was reported to book two billet lots to China of quantity 30,000 MT and 20,000 MT, and the deal value was noted to be USD 355/MT, FoB, and USD 360/MT, FoB respectively.

-- Recent Indian billet export tender for billet (150*150mm) is learned to have fetched bids at USD 365-368/MT, FOB. However, the tender is yet to be concluded as per sources.

-- Another Indian private mill concluded a billet deal to China at USD 380-385/MT, CFR of 30,000 MT quantity. The deal fetched higher value due to the port congestions issues.

SE Asia- SteelMint assessment for billet import offers in the SE Asian region is at USD 365-375/MT CFR, identical as last week.

-- The SE Asian market has crop up as a net exporter for the week. Approximately, 100,000 MT billets were reported to book from the region to China. However, limited billet imports were witnessed in the region, with similar price levels as last week.

-- This week, Vietnam was reported to book approximately 100,000 MT billets to China at USD 390/MT, CFR.

-- PT Dexin Steel, Indonesia is offering billets at USD 385/MT, CFR China for Jul'20 shipments.

-- Also, it is being learned from the scoops that the prime markets of the region such as Thailand, have started preparing for lifting the lockdown and get into the routine with certain guidelines. With this, billet imports are expected to rebound in the region. However, the rebound will not last for much longer as the monsoon is approaching in the region, which would again slow down the construction activities and hence, the billet imports.

China-- The domestic billet prices in China are at RMB 3,160/MT ex Tangshan (including VAT), up RMB 20, against last week.

Global billet price assessment:

Source: SteelMint Research