Weekly round-up: Global billets market sentiment subdued, deals muted

The global billets market remained silent this week in the absence of firm buying interest, volatile Chinese re-bar futures and price disparity between futures and spot prices.

Market highlights

• Indian billets export prices at two-month low: The Indian billets exports market continued to remain less active for yet another week. SteelMint's price assessment for Indian billet exports (150*150 mm, 3sp, BOF route) currently stands at $605-610/t FOB. Prices have fallen to two-month lows as per data maintained with SteelMint. "The market is completely dead as there are no firm indications from China and very limited bids from South East Asia", said a trader.
  
  
• Iranian billets exports market subdued: The Iranian billets exports market has seen a slowdown in deals following the global trends and a sharp drop in Chinese rebar futures. Iran's leading steel exporter floated an export tender for 30,000 t of steel billets for December shipments. As per market sources, the tender received a bid of $597/t but is yet to be concluded. "The market was very silent this week. It would be interesting to see if the company concludes the tender at $597/t FOB as it is quite a sharp drop against the last price of $620-625/t FOB, with the recent recovery in futures," said an Iranian source.
  
  
• Vietnam's billets export offers inch down: Vietnam's billets export market reported limited activity this week. According to SteelMint sources, the country's BF-route offers were at $630/t FOB, a drop of $10/t, w-o-w.
  
  
• SE Asia's imported billets market silent: The South East Asian imported billets market remained passive this week as Chinese buyers remained absent and importers from the SE Asian region adopted a wait-and-watch mode. SteelMint's bi-weekly assessment of imported billets offers from South East Asia currently stands unchanged at $660/tonne (t), CFR Manila, w-o-w.
  
  
• Thailand's billets prices unmoved: Indicative imported billet offers into the country were hovering in the range of $650-660/t CFR, stable, w-o-w. Also, no deals were heard to have been concluded this week.
  
  
• China's billet prices plunge towards the weekend: Steel billets prices in China's Tangshan witnessed a huge drop of RMB 510/t ($80), w-o-w. Domestic billet prices stood at RMB 4,290/t ($672/t), inclusive of 13% VAT. According to data maintained with SteelMint, China's SHFE rebar futures contract for Jan'22 delivery closed on 12 Nov'21, at RMB 4,249/t ($666), remaining range-bound on a weekly basis. According to Lange Steel, five leading steel mills in China, namely, Hebei Xinda Steel, Qinhuangdao Baigong Steel, Fengan Donghua Iron and Steel, Tangshan Songting Iron and Steel, and Hebei Jinxi Iron and Steel have mutually decided not to support the delivery of rebar futures to achieve sales and crack down on the current behaviour of forward delivery for which a joint meeting was held on the afternoon of 10 Nov'21.