Weekly round-up: Global billets prices continue to rally amid ongoing geopolitical conflict

Global billets prices continued its upward trend amidst absence of CIS offers due to the ongoing geopolitical conflict between Russia and Ukraine.

Market highlights

• Indian mills continue to lift billets export offers: Indian billets export offers witnessed a sharp rise this week amidst lack of offers from the CIS nations due to the ongoing crisis, higher domestic offers and hike in raw material prices. Meanwhile, an Indian mill had floated an export tender for spot sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP). The tender was floated against 100% advance payment terms with the due date on 8 Mar'22. The shipment is scheduled within 45 days from the export agreement. According to market sources, the tender fetched no bids. SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $750-770/t FOB on 11 Mar'22, up significantly by $63/t, w-o-w.
  
  
• Iranian billets export prices surge in recent deals: Iran's billets export trade prices moved up by around $65/t w-o-w in the recent deals concluded by steel mills. An Iranian mill concluded an export deal for 20,000 t of steel billets at $670-675/t FOB for Apr'22 shipment. Iran's billets export prices rose by around $70/t compared to the last-concluded tenders in mid-Feb. In another export deal, around 30,000 t of steel billets were booked at around $680/t FOB for end-Apr shipment. Iran's leading steel mill KSC had floated a tender for 80,000 t of billets and slabs. The tender was still under negotiation till the time of publishing this report.
  
  
• SE Asia billets import prices continue uptrend: South East Asian imported billets prices continued an upward trend this week amidst disruptions in supplies from CIS countries. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $790-800/tonne (t) CFR Manila, a rise of around $64/t w-o-w. Meanwhile, a parcel of 6,000 t of Japanese EAF billets was heard to be booked at $800/t, CFR Manila this week.
  
  
• Vietnam's billets export offers rise sharply: Vietnam's BF-route billets export offers stood at $800/t FOB, a spike of around $80/t, w-o-w. However, no deals were heard to be concluded this week. A steep hike in Japanese ferrous scrap prices following a surge in bids in Kanto tender lifted production costs.
  
  
• Thailand's imported billets prices up: Indicative imported billets prices into the country were hovering at a range of around $770-780/t CFR, up significantly by around $40-50/t CFR, w-o-w.
  
  
• China's billets prices up towards the weekend: Steel billets prices in China's Tangshan witnessed a significant rise of RMB 40/t ($6/t), w-o-w. Domestic billets prices stood at RMB 4,720/t ($744/t), inclusive of 13% VAT, on 11 Mar'22. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May'22 delivery closed at RMB 4,917/t ($775/t) on 11 Mar'22, a marginal increase of RMB 16/t ($2/t), w-o-w.