Weekly round-up: Volatile Chinese rebar futures, weak demand weigh on global billets market

The global billets market remained less active this week amid volatile Chinese steel futures and weak demand. According to data maintained with SteelMint, the Chinese rebar futures contract for May'22 delivery closed at RMB 4,322/t ($679/t), a w-o-w drop of RMB 62/t ($10/t) on 10 Dec'21. However, the same witnessed a rise of RMB 29/t ($4/t), d-o-d.

Market highlights

• Indian billets export market subdued on lower bids: The Indian billets export market continued to remain less active for yet another week in the absence of firm bids. However, the State-owned Vizag Steel Plant floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender was floated against an irrevocable letter of credit, as per RINL format, to be established within five banking days' payment terms with the due date being 10 Dec'21. SteelMint's price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) was recorded at $590-595/t FOB on 10 Dec'21. Prices fell to an eight-month low as per data maintained with SteelMint. These price levels were last seen in Apr'21.
  
  
• Iranian billets export prices fall to 8-month low: The Iranian billets export market continued to remain lacklustre this week, as bid prices declined further amid a lack of firm inquiries. SteelMint's latest assessment of Iranian billets (3 SP) decreased by around $5/t w-o-w to $560/t FOB on 10 Dec'21, thereby touching an eight-month low level. Khouzestan Steel Company (KSC) floated export tenders for 40,000 t each of steel billets and slabs. The shipment is likely to be scheduled for mid-Feb'22. As per SteelMint data, KSC's previous export tenders for billets and slabs were concluded at $588/t FOB and $565/t FOB respectively in end-Nov'21. Iranian steel mills are presently struggling with governmental restrictions regarding curtailment of natural gas usage, which has already begun impacting steel production volumes.
  
  
• 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 $620/t FOB, a drop of $5/t, w-o-w.
  
  
• SE Asia's imported billets market silent on weak demand: The South East Asian imported billets market remained passive this week while prices were mostly stable as Chinese buyers were absent and importers from the South East Asian region adopted a wait-and-watch mode. SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands range-bound at $640/tonne (t), CFR Manila.
  
  
• Thailand's imported billets prices unmoved: Indicative imported billets offers into the country from various origins stood at $640/t CFR, stable, w-o-w. Also, no deals were heard to have been concluded this week.
  
  
• China's billet prices up towards weekend: Steel billets prices in China's Tangshan witnessed an increase of RMB 20/t ($3/t), w-o-w. Domestic billet prices stood at RMB 4,310/t ($677/t), inclusive of 13% VAT on 10 Dec'21.