Weekly round-up: Weak Chinese steel futures impact global billets trade

The global billets market remained less active this week amid volatile Chinese steel futures which weighed down on the imported billets market. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for Jan'22 delivery closed at RMB 5,468/tonne (t) ($845/t), up by RMB 10/t ($1/t) w-o-w. However, it fell sharply by RMB 137/t ($21/t) against the closing on 23 Sept'21.

Market highlights

• Indian billet export prices up: The Indian billets export market regained some momentum this week after sentiments improved post the Chinese holidays. A state-owned Indian mill reportedly concluded another export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade), as per SteelMint reports. The shipment is scheduled within 45 days from the export agreement. According to market sources, the deal was concluded at around $630/t FOB (on a 100% advance payment basis). However, towards the weekend an Indian steelmaker had floated an export tender for spot sale of 30,000 t blooms (150x150mm, 3SP/4SP grade) against 100% advance payment terms, with the due date being 23 Sep'21. The shipment was scheduled within 45 days from the export agreement. The tender fetched dull response due to a sharp, d-o-d, fall in Chinese rebar futures.
  
  
• SE Asia imported billet prices unchanged: The imported billets market in South East Asia remained passive this week in the absence of firm bids. SteelMint's bi-weekly assessment of imported billet offers from South East Asia currently stands unchanged at $695-700/t CFR Manila.
  
  
• Vietnam's billet export offers unmoved: Vietnam's BF-route billet export offers remained unchanged at $675/t, FOB with no deals concluded this week.
  
  
• Thailand's imported billet offers stable: Indicative imported billet offers into the country are hovering in the range of $710-720/t CFR from various origins, unchanged, w-o-w.
  
  
• Iranian mills active in exports: An Iranian mill concluded an export deal for 40,000 t of slabs, reliable sources informed SteelMint. The shipment is yet to be confirmed. According to market sources, the deal was heard to be concluded at $675/t on FoB basis. Iran's slab export prices fell by around $5/t compared to prices seen in the last concluded tender. Also, an Iranian mill reportedly concluded another package of 30,000 t of steel billets for exports at $630/t FOB, sources informed SteelMint.
  
  
• China's billet prices up towards weekend: Steel billet prices in China's Tangshan increased by RMB 30/t ($5/t) w-o-w. Domestic billet prices stood at RMB 5,240/t ($810/t) towards the weekend, inclusive of 13% VAT.