Weekly round-up: Global billets prices on uptrend following sharp hike in Chinese rebar futures

The global billets market witnessed an upward trend this week following a sharp hike in rebar futures and active buying from Egypt.

According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for May'22 delivery closed at RMB 4,829/t ($759/t) on 28 Jan'22, a significant w-o-w rise of RMB 118/t ($18/t). Also, the same witnessed a sharp rise of RMB 156/t ($24/t), d-o-d.

Market highlights

• Indian billets export prices climb to 3-month highs: Indian billets export prices moved up by around $15/t in the deal concluded recently. With this, prices rallied to a three-month high as the similar levels were last seen towards end-Oct'21, as per data maintained with SteelMint. A state-owned mill concluded 30,000 t bloom (150*150 mm, 3SP/4SP) tender this week on 100% advance payment basis. As per sources, the tender was concluded at around $623-625/t FOB.
  
  
• Iranian billets export market less active: Iranian billets export market remained less active this week amidst the news of sudden power cuts at a few mills. No firm deals for exports were recorded by SteelMint this week. "Iranian steel mills are yet unclear on power curbs issues. Hence, no firm export offers or tenders have been witnessed this week," an Iranian source told SteelMint. SteelMint's assessment for Iran's billets export (130*130mm, 3SP) prices stood at around $555-560/t FOB on 28 Jan'22, up by around $2/t, w-o-w.
  
  
• Vietnam's billets export offers up: Vietnam's BF-route billets export offers stood at $640/t, FOB, up by around $20/t, w-o-w. However, no deals were reported to be concluded this week.
  
  
• Indonesian billets export prices rise: In a recent deal concluded earlier this week, Indonesia's Dexin Steel exported steel billets (150mm, 5SP) to South Korea at around $658/t on CFR basis, sources informed SteelMint. Indonesian billets export prices rose sharply by around $28/t compared to prices seen in the last concluded tender in mid-Jan'22.
  
  
• Active inquiries from Egypt: The recent deal from India was most likely to be concluded for Egypt. As per market sources, inquiries from Egypt may be seen in the coming months given the semis shortage on gas supply issues in the few countries. CIS nations concluded decent deals to Egypt to tap the demand in the African market. Deals were concluded at around $680-685/t CFR. However, the manganese content material fetched premium compared to standard grade.
  
  
• SE Asian imported billets prices rise: South East Asian imported billets prices witnessed an uptrend this week after a sharp hike seen in Chinese rebar futures. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $655-660/t, CFR Manila, a significant rise of $22/t, w-o-w.
  
  
• China's billets prices rise towards the weekend: Steel billet prices in China's Tangshan witnessed a significant increase of RMB 60/t ($9/t) w-o-w. Domestic billets prices stood at RMB 4,500/t ($707/t), inclusive of 13% VAT, on 28 Jan'22.