Weekly round-up: Bearish sentiments weigh down global billets market

The global billets market witnessed dull sentiments and low trading activity throughout the week due to several factors like holidays in South East Asia, the announcement of export tariffs by the Iranian government and bid-offer disparities in the Indian market.

Market highlights

• Indian ocean billets export market subdued: Indian BF-grade billets export market remained muted from the last few weeks on bid-offer disparities. Higher domestic realisations in finished steel, lesser allocations in exports, and falling bids from overseas markets kept trades at bay. However, as per sources, India induction furnace (IF-grade, 3sp) billets export offers from western India hovered at around $785/t FOB against the last price levels of $800/t FOB for the deals concluded for Africa. However, limited deals have also been reported at reduced offers recently. SteelMint's bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at around $750-770/t FOB on 15 Apr'22, stable w-o-w.
  
  
• Tariff cloud hangs over Iranian billets export market: Iran's billets export prices witnessed a downward correction in recently-concluded tenders. An Iranian mill concluded an export deal of 40,000 t of steel billets (150mm) towards the end of last week, sources informed. The deal was concluded at around $695/t FOB for May'22 shipment. Another export deal for 30,000 t of billets was concluded at around $696/t FOB for May shipment, most probably for South East Asia. Iranian mills were eyeing higher price levels of $710-730/t FOB but couldn't achieve. Meanwhile, Khorasan Steel floated a 25,000 t billet (150x150mm) export tender with the due date being 18 April. The shipment is likely to be scheduled for June. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $695/t FOB on 15 April, down $25/t, w-o-w. The Iranian Deputy Minister of Mines and Materials, in a letter to the Ministry, announced the imposition of export tariffs on various products, including steel on 11 April. In the case of steel billets, the export duty will be to the extent of 17% of the total product price.
  
  
• SE Asia billets import prices stable amid holidays: Price indications of South East Asian billet import remained stable this week. The imported billet market was closed amid holidays, sources informed. SteelMint assesses SE Asian billets import prices at around $800-810/t CFR Manila.
  
  
• Vietnam's billets export offers down: Vietnam's BF-route billets export offers stood at $750/t FOB, down $20/t, w-o-w. However, no deal was heard to be concluded this week.
  
  
• China's billets prices edge down towards the weekend: Steel billets prices in China's Tangshan witnessed a decrease of RMB 20/t ($3/t) w-o-w. Prices stood at RMB 4,810/t ($755/t), inclusive of 13% VAT, on 15 April. Meanwhile, China's rebar futures contract for Oct'22 delivery on the Shanghai Futures Exchange (SHFE) closed at RMB 5,049/t ($792/t) on 15 Apr'22, a marginal increase of RMB 30/t ($5/t), w-o-w.