Weekly: Global billet market overview

The global billet market is on a continuous rise. It was the second consecutive week when billet prices across the globe posed a sharp hike. The prices rise prominently driven by global scrap prices. Since last week, the imported prices in Turkey have increased by $15.

SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $350/t CFR Turkey, up by $15/t w-o-w. Prices are hovering at 2.5 years high. Like levels were seen in Apr'18.

The event (price rise) was also strongly backed by the Chinese rebar futures. However, during the week, it saw a significant drop. But yesterday, it rebounded and settled at RMB 3924/t ($597/t)

CIS- This week, the offers from the region noted having witnessed a sharp rise of $10-15/t. SteelMint's assessment currently stands at $460-470-/t, FoB Black Sea.

India - This week, we did not witness any substantial export offerings for 150*150mm BF route billets. However, the price indications were listened at $450/t, FoB India, up by $ 5-10/t w-o-w.

• Indian billet export market continues remaining silent for this week as well. The majority of mills continue to pose limited interest in the exports amid better domestic realizations. However, a soaring offer from a primary private mill heard floating at $500/t, CFR for this week as well for a Chinese or a SE Asian destination. Otherwise as well Indian mills are targeting higher prices considering an upward price spike in the global market.
  
  
• During a conversation with SteeMint, a trade source mentioned- $500/t, CFR is not the tradable price. I believe $475-480/t CFR is a decent price level in the current situation.
  
  
• Vizag Steel floats tender for 30,000t bloom export: Vizag Steel -a state-owned steel maker under the Ministry of Steel has floated an export tender for 30,000 t blooms (150x150mm. 4SP). The tender floated is on a 100% advance payment basis. The shipment is likely to be scheduled for the end-Dec'20. The tender due date is 27 Nov'20.
  
  

Iran- SteelMint assessed Iranian billet export prices to be at $435-445/t, up by $5 against last week.

• This week, The Iranian billet export market remained silent after booking sizeable volumes last week. However, few tenders are floating, and few are likely to be floated in the coming Iranian week (Saturday-Thursday). The mills are targeting higher price levels in the upcoming tenders, on continuous rising global scrap prices and Chinese rebar futures.
  
  
• The price expectations of Iranian mills have now increased to $445-450/t FoB levels after deals getting concluded at $440 FoB levels last week.
  
  
• Chadormalu's 30,000 t billet export tender- Chadormalu Mining and Industrial Company, one of the leading exporters of Iran, has floated an export tender for 30,000 t billets. The shipment is likely to be scheduled for Jan'21.
  
  
• Domestic billet prices witness a drop of IRR 4,110/kg ($21/t): Amid sluggish finished steel demand, the domestic billet prices in Iran at the Iranian Mercantile Exchange (IME) dropped further, by IRR 4,110/kg ($21/t) in a recently hosted trade event. According to SteelMint sources, on Tuesday, approximately, 23,000 t billets traded at IME at an average price of IRR 89,285/kg ($348/t)
  
  

SE Asia- This week, SteelMint assessment for billet import offers in SE Asia is at $480-490/t, up by $5-10 against last week.

• This week, the SE Asian billet import offers witness further rise on continuous rising global scrap prices. However, the market remained broadly silent on the high bid-offer spread. The offers have touched $495/t, CFR levels, while bids have seen at $475-480/t, CFR levels.
  
  
• Vietnam- The BF billet export offers from the country are seen stable at $490/t, FoB Vietnam levels, unchanged against last week.
  
  
• Thailand- Billet import offers in the country seen hovering at $485-495/t, CFR, up by $5-10/t w-o-w.
  
  

Chinese domestic billet price down by RMB 30 ($4.5) w-o-w- This week, the billet prices in the Tangshan market (northeast China) settled with a drop of RMB 30 ($4.5), against last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,590/t ($546/t) in Tangshan, inclusive of 13 % VAT. The billet transactions were moderate, while finished steel prices posed an upward trend. On the other hand, the billet import offers in the country have reached $500/t, CFR levels. However, we haven't encountered any deals at the increased price levels.

Global billet market snapshot-