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Weekly: Global billet market overview

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BigMint Bureau

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6 Mar 2021, 12:23 IST

The global billet market continued to remain active. Sizeable volumes witnessed having traded for the Chinese, SE Asian, and African destinations. The bookings broadly done were for China. The active buying interest from China amid rising domestic billet prices pulled up the global billet prices.

However, yesterday during the afternoon, Chinese domestic billet prices slipped by RMB 100 ($15) owing to a drop in rebar futures. It will likely pull down the global billet prices in the coming weeks. India and Iran stood as the prominent exporters during the week.

CIS: This week, billet export offers from the region remained broadly stable at $580/t, FoB.

India: SteelMint's bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $540-545/t, up by $5-10, w-o-w.

On rising demand, the Indian mills are highly active in the export market these days, especially state-owned mills. Two of the Indian state-owned mills have floated export tenders for around 142,000 t billets/blooms.
Out of which, 60,000 t has recently booked for China at a price level of $540/t, FoB India. The remaining are in progress.

Iran: SteelMint's bi-weekly assessment for Iranian billets is currently at $550-560/t, FoB, up by $10-15 w-o-w.

It was the third consecutive week when billet export prices surged. In recent export deals concluded early this week, Iran's leading steel exporters reported having fetched a price level of $550-560/t, FoB. With these deals, Iranian billet export prices registered a rise of $10-15.
In a recent export deal concluded early this week, Iran's leading steel exporter reported having fetched a price level of $555-560/t, FoB. The deal was concluded through a tender, floated for 30,000 t billets (150*150mm). The shipment is scheduled for end-Mar '21 with China as the likely destination.
Another leading Iranian steel exporting mill, Esfahan Steel Company (ESCO), has concluded an export tender floated for 20,000 t billets towards mid of last week. According to SteelMint sources, the company concluded the tender at $550-552/t, FoB Iran. The shipment is scheduled for end-Mar '21, with an African nation as the likely destination.
Chadormalu is likely to float an export tender for 30,000 t billets by next week, SteelMint learned during conversations with an official.
IME reported over 94,000 t billet trades: This week, the Iranian Mercantile Exchange (IME) reported 94,400 billet trades. According to SteelMint sources, amid rising demand, the average trading price has registered a rise of IRR 1,727/kg ($7) to reach IRR 104,579/kg ($415/t). The offered quantity was 114,135 t, while the base price was IRR 103,021/kg ($408/t).

SE Asia: This week, SteelMint assessment for billet imports in SE Asia is $590-600/t CFR, up by $15-20 w-o-w.

This week, moderately good volumes reported having booked at the increased prices in the Philippines from CIS. The active Chinese buying interest has softened the SE Asian buyers to raise the bids. Consequently, increasing the imported billet offers in the region.
However, the offers witnessed had a wide range from $590-630/t, CFR, subjected to source and destination. For instance, billets from Vietnam for the Philippines have heard offered at $630/t, CFR levels. While Iranian billets offered were at $595-600/t, CFR Thailand.
Although the buying interest noted was at $580-595/t, CFR, SteelMint learned during conversations with market participants.
Thailand - This week, the imported billet offers in the country saw a rise of $10-15 and are currently seen at $570-575/t, CFR.
Vietnam- The billet export offers from Vietnam rose by $10 this week. Currently, the BF route billets are offered at $600/t, FoB, while the IF route offers are $590/t, on an FoB Vietnam basis.
Thailand: This week, the imported billet offers in the country saw a rise of $15-20 and are currently seen at $585-590/t, CFR.

Chinese domestic billet prices settled with a rise of RMB 30 ($4.6): This week, Chinese domestic billet prices settled with a rise of RMB 30/t ($4.6/t). The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,310/t ($663/t) in Tangshan, including 13 % VAT.

Global billet market snapshot-