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Weekly: Global billet market overview

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BigMint Bureau

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24 Oct 2020, 13:59 IST

This week, sizeable billet volumes reported having traded in the global billet market. The bookings have been predominantly for the SE Asian destinations and China. India, Iran, and Vietnam stood as prominent suppliers for the week. However, on fluctuating Chinese rebar futures, a minor bid-offer disparity has been witnessed.

CIS billet export offers increased marginally- This week, billet export offers from the region have increased marginally and are at $405/t, FoB Black Sea, up by $3-5, against last week. Also, a booking was heard for the Philippines at $460/t, CFR levels. However, SteelMint could not confirm the quantity and the deal value until the publishing time of this report.

Indian billet export offers remained stable- SteelMint assessment for Indian billet export offers (150*150mm, FoB east coast) is at $415-420/t FoB, unchanged against last week.

After witnessing multitudinous dramatic moves, an Indian mill was reported to have concluded 30,000 t (150*150mm, 3SP/4SP) bloom export tender floated for spot sale. According to SteelMint sources, the company managed to achieve a price level of $415-420/t, CFR. The shipment is likely to be shipped by the end of Nov'20 to a SE Asian destination.
Upcoming Indian billet/bloom export tenders -

Chinese bids for Indian billets remained unchanged: Currently, ASEAN imports in China are reasonable than Non-ASEAN due to duty advantages. Hence, Chinese buyers have seen insubmissive in terms of bidding, in parallel with the market pace. Also, during a conversation with the market participant, SteelMint learned, the country has booked over 0.1 mn of pig iron during last week in the range of $385-390/t, CFR levels, which indicates- China could limit its billet buying.

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

Iranian billet export market witnessed limited trades this week. Although, mills kept the offers unchanged. But the majority of the buyers have not seen bidding in parallel with the market facts.
Chadormalu concludes 30,000 t billet export tender- Chadormalu Mining and Industrial Company, one of the leading steel exporters of Iran, is reported having concluded its 30,000 t billet export tender, floated last week. According to SteelMint sources, the company achieved a price level of $412/t, FoB, up by $2 against previously concluded tender. During H1 Persian Year (20 Mar-20 Sep'20), the company exported approximately 270,000 t billets.
Iranian domestic billet prices witness a sharp fall- The domestic billet prices at the Iranian Mercantile Exchange (IME) saw a sharp decline of IRR 8,602/kg ($47/t) amid sluggish demand. In a recent trade event hosted by IME, approximately 75,400 t billets traded at an average price of IRR 95,784/kg ($346/t).

SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $445/t, CFR, up by $5 against last week.

This week, the SE Asian billet import market reported having booked decent volumes. The bookings were predominantly from India for the Philippines and Indonesia. However, minor bid-offer disparity still exists in a few nations. For instance, the offers in the region reported at $445/t, CFR, while bids were at $ 440-442/t, CFR.
Around 40,000 t blooms/billets (30,000 t blooms and 10,000 t 5SP IF route billets) reported having booked for the Philippines and Indonesia. According to SteelMint sources, blooms are booked for the Philippines at $418/t, FoB ($443/t, CFR), while billets booked for Indonesia at $446/t, CFR levels.
Vietnam- The country booked around 20,000 t billets for China at $450/t, CFR. With the deal, the billet offers from Vietnam noted a marginal rise of $3/t and are at $448/t, FoB.
Thailand- Billet import offers in the country saw a marginal rise and were noted to be at $445/t, CFR, up by $5 against last week.

Chinese domestic billet price up by RMB 40 ($6) w-o-w-This week, the billet prices in the Tangshan market (northeast China) settled with a rise of RMB 40, against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,430/t ($514/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-