Weekly: Global billet market overview
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This week sizeable billet volumes reported having traded in the global billet market. Market sentiments noted were mixed. Offers from India and CIS remained broadly stable. On the other hand, Iran booked billet volumes at increased prices for China and SE Asian destinations.
However, in the latter half of the week, the bid-offer disparity has seen amid the down-trending SHFE rebar Jan'21 futures contract. Notably, the futures opened with a rise of RMB 73 at RMB 3633/t, after the Chinese Golden Week holidays, and settled with a rebound at RMB 3632/t, at par with opening price, post-holidays.
CIS billet export offers remain stable- This week, billet export offers from the region were seen stable at $400-405/t, FoB Black Sea, against last week. Sizeable billet volumes were booked for the African region from Russia at the price levels of 430-435/t, CFR.
Indian billet export trades limited amid bid-offer disparity- SteelMint assessment for Indian billet export offers (150*150mm) is at $415-420/t FoB, unchanged against last week.
- The Indian billet export market remained silent for this week as well.
- An Indian state-owned mill has floated a spot sale tender for the export of 30,000 t blooms (150*150mm, 3SP/4SP grade) against 100% advance payment terms. The shipment is likely to be scheduled by 30 Nov'20. SteelMint could not confirm the tender result until the publishing time of this report. Notably, amid high bid-offer disparity, the company had to re-issue its 30,000 t spot sale, bloom export tender, twice this week. However, both the time, the company ended up canceling the tender.
- Indian IF grade billet export deals reported at $425-430/t CPT Nepal
Iran billet export offers up in recent deals- SteelMint assessed the billet export offers from Iran to be $410-415/t, FoB, up by $8-10/t against last week.
- This week, the Iranian billet export market saw sizeable bookings for China and SE Asian destinations. The billet export offers from the country witnessed a sharp rise after the export bookings.
- Two Iranian export majors', Khouzestan Steel Company (KSC) and Esfahan Steel Company (ESCO), reportedly have booked around 60,000 t billets at increased prices.
- Domestic billet prices at IME witness a sharp rise of IRR 10,774/kg ($17/t): The domestic billet prices in Iran at the Iranian Mercantile Exchange (IME) rose by IRR 10,774/kg ($17/t) amid depreciating IRR against $. In a recent trade event hosted by IME, approximately 86,000 t billets traded at an average price of IRR 104,386/kg ($393/t).
SE Asia billet offers remain unchanged- This week, SteelMint assessment for billet import offers in SE Asia is at $440-445/t, CFR, unchanged against last week.
- This week, SE Asian billet import market saw limited bookings on down-trending Chinese rebar futures. After the Chinese Golden Week holidays, the SHFE rebar Jan'21 futures contract opened with a rise of RMB 50. However, on 15 Oct'20, it settled with a decline of RMB 21, against 12 Oct'20, at RMB 3,612/t. The buyers are anticipating a further drop in futures, and hence, were seen in a wait & watch mode.
- Vietnam- Hoa Phat, one of the leading steel producer and exporter, is reported having booked 40,000 t billets for China (20,000 t this week, and 20,000 t during last week). According to SteelMint sources, the company achieved the price levels of $435/t and $425/t, respectively, on FoB Vietnam basis. The company recorded four mn t steel sales in the first nine months of CY'20, up by two-folds CPLY. This week, the export offerings from the country stood at $445/t, FoB Vietnam, unchanged against last week.
Chinese domestic billet price up by $20 w-o-w-This week, the billet prices in the Tangshan market (northeast China) settled with a rise of RMB 20, against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,390/t ($506/t) in Tangshan, inclusive of 13 % VAT. The Chinese bids for Non-ASEAN billets have seen in the range of $425-430/t, CFR.
Global billet market snapshot-
