Weekly: Global billet market overview

This week, sizeable billet volumes traded in the global billet market with increased prices. The bookings prominently are done for SE Asian destinations and China from Russia and India. However, Chinese steel futures witnessed a sharp downward trend. Also, global scrap prices have seen softening this week. The market participants, lacking clarity on future market trends. During the conversation with SteelMint, few traders indicated that Chinese mills are likely to turn active for steel exports considering the decline in futures.

CIS- The offers from the region for a SE Asian destination saw a marginal increase and were at $450-455/t, CFR, up by $5, against last week. Sizeable billet cargoes booked for the Philippines from Russia at $450-455/t, CFR, this week. CIS billet export assessment stands at $415/t, FoB, Black Sea.

India- SteelMint assessment for Indian billet export offers (150*150mm) has risen by $2-3 w-o-w and is at $430/t, FoB India.

• Recent Indian billet export tender fetches firm bids- An Indian billet export tender reported having fetched bids at a level of $430/t, FoB India. The company had floated the tender for 16,200 t quantity (125*125mm, 4SP/5SP) for the end Nov'20 shipments.
  
  

Iran- This week SteelMint assessed billet export offers from Iran to be at $410-415/t, FoB Iran, up by $5 against last week.

• Iranian billet export prices witnessed a marginal rise for the second consecutive week on increased global scrap prices, supported by continuous climbing domestic prices. However, marketers believe there is no real demand in the Iranian domestic market. The majority of the trades are happening due to the speculation. Since IRR is continuously falling against $, therefore people are exchanging their money with the steel commodities.
  
  
• KSC concludes billet export tender at an increased price-Khouzestan Steel Company (KSC), Iran's leading steel exporter, has booked 30,000 t billets through a tender. According to SteelMint sources, the company managed to achieve a price level of $415/t, FoB Iran, up by $9-10, against previously concluded tender.
  
  
• Chadormalu has floated 30,000 t billet export tender for mid-Oct shipment
  
  
• Domestic billet prices rise sharply in recent trades at IME- Amid rising demand and depreciating IRR against $, Iranian domestic billet prices have witnessed a sharp rise amid in a recent trade event hosted by the Iranian Mercantile Exchange (IME). Yesterday, around 80,400 t billets traded at an average price of IRR 99,223/kg ($470/t), up by IRR 8,296/kg, against the previously concluded deals.
  
  

SE Asia- This week, SteelMint's assessment for billet import offers in SE Asia has moved up sharply and is currently at $445-450/t, CFR, up by $10 against last week.

This week, SE Asian billet import market reported having booked decent billet volumes from India and Russia on increased prices. The bookings are prominently for the Philippines for Oct-Nov'20 shipments. The offers in the region reached $450-455/t, CFR levels, while bids were at $440-445/t, CFR levels. Amid rising demand, the bid-offer spread contracted this week.

China- This week, Chinese domestic billet prices settled with a sharp decrease of RMB 50, against last week's closing due to a decline in futures. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,370/t ($499/t) in Tangshan, inclusive of 13 % VAT. The bids for imported billet in China saw a rise and were ranging from $440-445/t, CFR, for non-ASEAN billets.

Global billet market snapshot-