SE Asia: Billet import price downtrend continues amid bearish market sentiments

South East Asia’s imported billet prices continued their downward trend this week due to low buying interest, weak finished steel sales and falling raw material prices. SteelMint's bi-weekly assessment of billets (150*150mm, 3SP) imported by the Philippines currently stands at around $700/tonne (t) CFR Manila, a significant fall of $55/t w-o-w.

The volatility in China's SHFE rebar futures and cheap Russian billet offers have kept deals at bay. According to data maintained with SteelMint, the Chinese SHFE rebar futures contract for October 2022 delivery closed at RMB 4,670/t ($688/t) on 13 May 2022, witnessing a sharp fall of RMB 64/t ($9/t) w-o-w.

Market highlights

• Vietnam’s billet export offers down: Vietnam's BF-route billet export offers stood at $695/t FOB, a w-o-w drop of $15/t. Weak buying interest, falling prices of raw materials and domestic scrap continue to weigh down offers.
  
  
• Thailand’s imported billet prices fall: Indicative imported billet prices into the country were hovering at around $710/t CFR, a significant fall of around $30-40/t, w-o-w. Also, offers from Russia were heard at around $650-660/t on CFR levels.
  
  
• Indian billet export price indications drop on lower bids: Indian BF-grade billet export price indications fell sharply on drop-in bids followed by competitive offers from CIS nations and a fall in scrap offers. Lack of clarity in the market led to incoherent buying decisions. Indian steel mills are still showing a lack of interest in the ongoing billet export bids. On the other side, the zero-Covid situation in China made the billets market more proactive. SteelMint's bi-weekly price assessment for Indian billet exports (150*150mm, 3SP/4SP, BOF route) stood at around $705/t FOB on 13 May 2022, down $30/t, w-o-w.
  
  
• Iranian mills turn active post-Eid holidays: The Iranian billet exports market turned active post-Eid holidays and has seen robust offerings by mills. With over 130,000 t of billet export tenders lined up by key mills like KSC, Arfa, Sirjan, etc, trade is likely to resume after a pause. However, a drop in global scrap and billets prices have put Iranian mills in a state of worry. The challenging market conditions and cheaper billets offer by Russia kept the market competitive. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at $650/t FOB on 13 May, lower by $20, w-o-w.