Weekly: Global billet market overview

This week, sizeable billet volumes were reported to be traded in the global billet market. However, billet export offers of all the major billet exporting nations witnessed a marginal drop. Where demand from China was slow amid ongoing dragon festival; 25-27 Jun'20, while the Middle-East region was reported to book sizeable billet cargoes, SE Asia was also noted had booked decent billet volumes. China's sedentariness has accommodated enough space to the other importing markets like SE Asia for negotiation.

CIS- The billet export offers from the region were noted to witness a drop of $5-10/t, to reach $360-365/t, FoB Black Sea. Sizeable billet cargoes were reported to book from the region.

India- SteelMint's assessment for Indian billet (150*150mm) export stands at $375-380/t, FoB India.

* Indian billet export prices have inched down marginally in recent deals. Since last week, Indian mills are reported to book over 80,000 t billets. According to trade sources, the majority of deals are heard to have been booked for China.

* Recent deals for Indian 150*150mm billets are reported at $375-380/t FoB India against last week's deals of $380-385/t FoB India.

Iran- SteeMint assessment for billet export offers from Iran has come down marginally and is $370-375/t, FoB Iran, marginally down by $1-2 against last week.

* This week, Iran was reported to book enormous billet volumes. However, billet export offers from the country have got little soften, SteelMint learned from a market participant. According to sources reported to SteelMint, Iranian mill was reported to book around 30,000 t billets to SE Asia at $395-400/t, CFR. Apart from this, numerous deals were also reported from the country, few reports have mentioned.

* KSC floats billet export tender- Meanwhile, one of the leading exporters of Iran KSC (Khouzestan Steel Company) has floated an export tender for 30,000 t billets for early Sep'20 shipments. The company is expecting the price levels of $375/t, FoB for the tender. Before this, the company had concluded an export deal through a tender at $375-380/t, FoB Iran levels.

* Domestic billet prices surge at IME- This week, approximately 98,300 t billets were traded at Iranian Mercantile Exchange, at an average price of IRR 67,890/kg ($353/t), excluding 9% VAT. The sharp increase in billet offers was a result of a sudden depreciation of IRR to the $ on Wednesday; 24 Jun'20. Steelmakers raised offers to keep IRR-based prices in line with $-denominated, globally traded billet prices.

SE Asia- SteelMint assessment for billet import offers in SE Asia has a witnessed a marginal change only, and is at $405-410/t, CFR, down $5, against last week.

* This week, SE Asian billet import market was noted to witness limited trades, over marginal drop in the offers. Iran was noted to be the major supplier for the week, to the region, as the country was reported to book 30,000 t billets for Thailand. Amid ongoing holidays; 25-27 Jun'20, the billet demand in China is dull, this has accommodated Thailand enough space for negotiation. The offers in the region are mentioned below-

* Vietnam - Meanwhile, following the global trend the billet export offers from Vietnam were reported with marginal drop and are at $405/t, FoB, down $2-5, against last week. While domestic billet offers in the country are at $403/t, CIF.

Global billet deals noted by the SteelMint:

Global billet price assessment: