Weekly: Global billet market overview

It was the second consecutive week when sizeable billet volumes traded in the global billet market. The bookings were prominently for SE Asian destinations.

Chinese SHFE rebar future Jan'21 contract was on a continuous decline. During 18-25 Sep'20, the futures witnessed a drop of RMB 81 (~$12), from RMB 3,603/t to RMB 3,522/t. Hence, for this week, there was limited buying interest for imported billets in China, and bids from the country were ranging from $415-425/t, CFR for Non-ASEAN billets.

Also, the domestic billet prices in China are trending downwards. This week, Chinese domestic billet prices settled with a sharp decrease of RMB 40, against last week's closing. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,330/t ($489/t) in Tangshan, inclusive of 13 % VAT.

CIS- The offers from the region for a SE Asian destination were at $450-455/t, CFR, unchanged against last week. Around, 50,000 t billet cargoes booked for the Philippines from Russia at $445-455/t, CFR, this week. CIS billet export assessment stands at $410-415/t, FoB, Black Sea, down by $2-3 against last week.

India- SteelMint assessment for Indian billet export offers (150*150mm) is at $430/t, FoB India, unchanged against last week.

• The major Indian private primary mills choose to stay out of the global billet market for this week, with a focus on the domestic market. However, a private mill was heard to have booked 40,000 t billets for the Philippines.
  
  
• On the other hand, a state-owned primary mill along with few secondary mills booked over 15,000 t billets for Nepal. While secondary mills have booked approximately 5,000 t billets. The current offers from the state-owned primary mill for Nepal are at $440/t, ex-works.
  
  

Iran- SteelMint assessed the billet export offers from Iran to be at $410-415/t, FoB Iran, broadly stable against last week.

• Iranian billet export prices remained broadly stable this week. However, there were indications for a drop in prices in the coming week. Due to bid-offer disparity and continuous falling Chinese rebar futures, the country witnessed limited billet bookings for this week. The mills are offering in the range of $415-420/t, FoB Iran levels, while the buyers are bidding at $400/t, FoB Iran levels, SteelMint learned from market participants.
  
  
• Iranian government increases billet supply at IME for this week- On rerollers complaints about the insufficient billet supply, the Iranian government has asked steel mills to raise supply at the Iranian Mercantile Exchange (IME). Concerning the same, the billet supply at IME has increased to twice a week. For this week, the supply schedule was on 20 Sep'20 and 22 Sep'20. On 20 Sep'20, 66,000 t billets traded at an average price of IRR 97,494/kg ($426/t), while on 22 Sep'20, the same was 83,900 t at an average price of IRR 99,976/kg ($437/t). Approximately 150,000 t billets traded during this week.
  
  

SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $445-455/t, CFR, unchanged against last week.

• The SE Asian billet import market reported having booked sizeable billet volumes from Russia and India. The bookings are prominently for the Philippines. On the other hand, the other ASEAN nations (Thailand, Indonesia, Malaysia) remained silent on falling Chinese rebar futures, which led to an increase in the bid-offer spread in the region.
  
  
• The domestic prices of some countries have reached on par with the import offers. For instance, the domestic billet prices in Indonesia are at IDR 6683/kg ($450/t), excluding 12% VAT, while import offers in the country heard in the range of $440-450/t, CFR.
  
  
• Vietnam- This week, the billet offerings from the country remained unchanged against last week and are standing at $450/t, FoB.
  
  

Global billet trade snapshot-