Weekly: Global billet market overview

This week, the global billet market witnessed limited trades amid fluctuating Chinese rebar futures. Due to this, the buying bids dipped and did not rebound in parallel with the rebar futures. On the other hand, the offers from the prime exporting (billet) nations like CIS, India, and Iran remained broadly stable, except for Vietnam which, reported having witnessed a rebound of around $40 and settled unchanged against last week's closing.

CIS: This week, billet export offers from the region witnessed a marginal rise and are currently at $580-585/t, FoB.

India: SteelMint's bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is $545-550/t, up by $5-10, w-o-w.

• Despite the volatile global market, Indian mills have remained active in the global billet market. However, the recent fall in the Chinese steel futures market and rising vessel freight rates were a setback and have prevented Indian mills from fetching bids in line with their expectations.
  
  
• Indian mills reported having booked two cargoes of around 50,000 t billets in the price range of $545-550/t, FoB India. Market participants confirmed that one among the two cargoes is likely to be shipped for a SE Asian destination
  
  

Iran: SteelMint's bi-weekly assessment for Iranian billets is currently at $550-555/t, FoB Iran, down by $5 against last week.

• Iranian billet export market broadly remained silent on bearish global sentiments. However, a couple of leading Iranian mills have floated export tenders for 60,000 t billets (30,000 t each). The shipments are likely to be scheduled for Apr '21.
  
  
• Iranian mills are likely to have more allocation for billet exports after 21 Mar '21 (after their new year) and before Ramadan (in Apr '21), SteelMint learned during conversations with a trader.
  
  
• Iranian domestic billet prices continue rising: The domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a rise for the second consecutive week. This week, the average traded billet price was reported to have increased by IRR 1,509/kg ($6) to reach IRR 106,088/kg ($429/t). The offered quantity was 136,800 t, against which 91,260 t were traded.)
  
  

SE Asia: This week, SteelMint assessment for billet imports in SE Asia is $590-600/t CFR, unchanged against last week

• This week, SE Asian imported billet market broadly remained silent despite fluctuating global dynamics. Owing to this, the buying bids dipped to $575-580/t, CFR levels - down by $5-10 w-o-w. Though, billet export offers for the region witnessed a rebound along with the Chinese rebar futures.
  
  
• However, the bids did not rebound in parallel with the export offers. The billet export offers for the region reported having touched $600-605/t, CFR levels, leading to the bid-offer disparity.
  
  
• Meanwhile, a few traders booked Indian billet cargoes, which are likely to be shipped for SE Asian destinations.
  
  
• Vietnam- This week, billet export offers from Vietnam settled stable after witnessing a rebound amid waving futures. Currently, the BF route billets are offered at $600/t, FoB.
  
  
• Thailand: This week, the imported billet offers in the country saw a drop of $5-10 and are currently seen at $580-585/t, CFR.
  
  

Chinese domestic billet prices settled with a rise of RMB 120 ($18.4): During the mid of this week, amid falling futures, the domestic billet prices witnessed a fall of over RMB 100 ($15.3). However, towards the weekend, they (prices) rebound and settled with a rise of RMB 120/t ($18.4/t). The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,430/t ($681/t) in Tangshan, including 13 % VAT.

Global billet market snapshot-