SE Asia: Imported billets market sluggish, but Chinese rebar futures support prices

South East Asia’s imported billets market remained silent this week with no active deals heard. However, prices remained supported following a sharp hike in Chinese rebar futures.

According to data maintained with SteelMint, Chinese SHFE rebar futures stood at RMB 4,167/t ($606/t) on 17 February, 2023, a sharp rise of RMB 93/t ($13/t) w-o-w as against RMB 4,074/t ($592/t) on 10 February, 2023.

SteelMint's bi-weekly assessment of BF-route billets (150x150mm, 3SP) imported by the Philippines currently stands at around $600/t CFR Manila, an increase of $3/t w-o-w.

Market highlights

• Vietnam’s billet export offers unchanged w-o-w: Vietnam’s BF-grade billet export offers remained stable at $630/t FOB this week as the upward trend in finished steel demand post-Tet holidays was not high.
  
  
• Thailand’s imported billet prices stable: Imported billet prices in the country remained stable for the second consecutive week at around $620-640/t CFR.
  
  
• Indian mills continue to eye higher billet prices: Indian mills have become active in the export market. As per sources, Indian mills' expectations for recent billet export tenders are at around $600-610/t FOB. Meanwhile, State-owned Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The due date of the tender is 22 February, 2023 and the delivery is scheduled for 15 April, 2023.
  
  
• Iranian billet export prices rise w-o-w: Iran's billet export market witnessed limited trading with prices rising w-o-w. Lesser number of firm offers and the harsh winter in the region held back trade activities in the market. Meanwhile, an Iranian steel mill has concluded an export deal for 20,000 t of steel billets at $560/t FOB for early-April, 2023 shipment towards the end of last week. However, limited export allocations amidst power curbs kept billet export prices supported. SteelMint's latest assessment of Iran's billet (3SP) export prices stood at around $558/t FOB on 17 February, an increase of around $15/t w-o-w.