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Weekly: Global billet market overview

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BigMint Bureau

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31 Oct 2020, 16:10 IST

This week, the global billet market saw limited trades on increased global scrap prices and SHFE rebar futures. Since last week, the global scrap prices have registered a rise of $5-8, w-o-w. On the other hand, SHFE rebar futures posted an increase of RMB 86 (~$13) w-o-w. These events have marginally pulled up the prices from a few regions. However, the buyers have not seen bidding in the range of offers, which resulted in conceiving disparity

CIS billet export offers remained stable- This week, billet export offers from the region remained stable at $405/t, FoB Black Sea.

Indian billet export prices saw a marginal rise- SteelMint assessed Indian billet (BF grade 150x150mm FoB East Coast) export offers at $418-421/t - up by $2-3/t compared to last week.

The Indian billet export market regained momentum this week with over 50,000 t billets/blooms reported having booked. According to SteelMint sources, a leading PSU steel-maker managed to achieve a price level of $420-422/t FoB India for blast furnace grade blooms (150x150mm and 200x200mm, 3SP/4SP grade) while billets (65x65mm, IS 3820 grade) fetched around $435-440/t FoB India. The shipments are likely to be scheduled for the end of Nov'20, for delivery.
SteelMint's credible sources opined that shipment is likely to be scheduled for a SE Asian nation. However, we could not confirm the destination until the publishing time of this report.

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

This week, the Iranian billet export market remained silent to maintain the supply parity in the domestic market. During a conversation with SteelMint, a market participant mentioned- the Iranian government wants to control the prices in the domestic market and hence asked the mills to increase the supply in the domestic market to discover the prices legitimately.
To discover the real market prices and to maintain transparency, the Iranian government is likely to offer a complete steel chain supply at IME (Iranian Mercantile Exchange). The Industry, Mining, and Trade Ministry has set up a joint committee with some other executive bodies to follow up on this issue.
Domestic billet prices witness a rebound at IME: This week, the domestic billet prices reported a rebound in a recent trade event hosted at the IME. According to SteelMint sources, approximately 187,000 t billets were traded at an average price of IRR 101,460/kg ($378/t), up by IRR 5,676/kg ($32/t) w-o-w.
Khorasan Steel Company floats 20,000 t billet export tender: One of Iran's leading steel exporter has floated an export tender for 20,000 t billets (150*150mm). The shipments are likely to be scheduled by Dec'20 for delivery.

SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $450-455/t, CFR, up by $5-8 against last week.

This week, SE Asian billet import market reported silent amid increased offers. The import offers in the region have pulled by the global scrap prices and SHFE rebar futures. The imported billet offers in the SE Asian region have seen in the range of $455/t, CFR, up by $10 against last week. However, the bids have not increased in parallel with the offers, which resulted in conceiving disparity.
Vietnam-The export offerings from the country remained stable for this week. The offers for the BF route billets were $450/t, FoB, while the same for the IF route have seen at $445/t, FoB.

Chinese domestic billet price up by RMB 10 ($1.5) w-o-w-This week, the billet prices in the Tangshan market (northeast China) settled with a rise of RMB 10, against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,440/t ($514/t) in Tangshan, inclusive of 13 % VAT.

Global billet market snapshot-