Weekly: Global Billet Market Overview

Global billet market was reported with mixed sentiments. While billet export offers from Iran, CIS and India witnessed an increase, SE Asia billet import offers witnessed a marginal drop during the week. China's billet offerings have disturbed the SE Asian market sentiments. China's shift in interest towards billet exports is a result of dull domestic demand. The country is still battling with the corona virus and is struggling to revive from its effect. The pandemic has brutally disturbed the Chinese steel market dynamics.

Meanwhile, increasing global scrap prices have managed to keep billet export offers supported of all the major billet exporting nations; Iran, CIS and India. However, due to better realizations in domestic and Nepal market, India has shown limited interest in Ocean offerings.

CIS-CIS billet export offers witness an increase of USD 5-10/MT W-o-W amid rising global scrap prices. This week, billet export assessment from CIS nations are at USD 395/MT, FoB Black Sea.

Iran- Khouzestan Steel Company (KSC) - one of the leading exporters of Iran has concluded a billet export deal recently. The deal quantity is 30,000 MT and size is 150*150 mm. The delivery is scheduled for end Mar'20. As per market sources reported to SteelMint, the company has concluded the deal to some GCC country. The deal value was reported to be around USD 385-390/MT, FoB Iran.

With this deal, SteelMint's billet export assessment has increased. SteelMint assessment for billet export offers from Iran is at USD 385-390/MT, FoB Iran, up USD 5-10/MT against last week.

India- Steel Authority of India - a government of India company had floated export tender for prime mild steel non alloy concast billets. The tender quantity is reported to be 18,900 MT. The cargo will be shipped from Haldia port. The tender was put up for size 150*150mm offered from IISCO Steel plant. As per market sources report to SteelMint, the tender has been cancelled amid limited participation.

Indian mills remained less active in exports amid higher realization in domestic market. As per sources, Indian mills are eyeing for USD 415/MT, FoB India and bids received were on the lower side.

SE Asia- This week, SE Asia billet import market was reported with mixed sentiments, as China's billet offerings has disturbed the sentiments in the region. Billet export offers from China for SE Asia were heard to have at USD 415/MT, CFR. Meanwhile, the domestic billet offers in Indonesia were reported stable and are at IDR 7500/MT, CIF Jakarta, including taxes. SteelMint's assessment for SE Asia billet import at USD 410-415/MT, CFR marginally down USD 5/MT against last week.

Vietnam- The 5SP grade billet export offers from the country were heard to have at USD 410/MT, FoB, down USD 5/MT against last week.

China- After five long weeks, the country has witnessed some movement in domestic billet market. However, the price correction was high degree negative. This week, Chinese domestic billet market was settled at RMB 3,010/MT, down RMB 290/MT against Lunar holidays closing. The market sentiments in the country were reported weak. Amid weak domestic demand; which is a result of corona virus outbreak, the country has started offering in SE Asian market. Billet export offers from the country for SE Asia were heard to have at USD 415/MT, CFR.

SteelMint assessment for the USA origin scrap HMS 1&2 (80:20) stands at around USD 280/MT CFR Turkey, successively increasing by USD 5/MT against the closing of the last week.

Global Billet prices:

Source: SteelMint Research