Weekly: Global billet market overview

This week, the global billet market broadly remained silent on volatile Shanghai Futures Exchange's rebar market. However, the futures market posed an upward trend for the entire week. According to the data maintained with SteelMint, on 4 June '21, the futures settled at RMB 5,159/t ($805/t), up by RMB 11 on a day-on-day (d-o-d) basis. However, on a week-on-week (w-o-w) basis, they (futures) rose by RMB 226/t ($35/t). Although marketmen believe the trend is yet to gain stability. Hence, buyers are in a wait-and-watch mode.

Russia: Billet export offers from the Black Sea reportedly fell to $640-645/t, FoB, down by $15-20/t w-o-w, while no substantial offerings were heard from Vanino/Vlad (Far Eastern Russia).

India: SteelMint's bi-weekly price assessment of Indian billets (150*150mm, BF route, FoB east coast) stands at $605/t, FoB as on 4 June '21.

• The Indian billet exports market remained dull on volatile rebar futures on the Shanghai Futures Exchange (SHFE), strongly supported by new guidelines issued by Chinese port authorities for Indian cargoes. According to SteelMint's sources, "Chinese buyers are less interested in Indian cargoes as they are asking for mandatory 28 days' waiting period before berthing at Chinese ports."
  
  
• The two state-owned mills have floated export tenders for around 48,000 t of blooms and billets, which are due today (4 June'21). According to our analysis and market participants' reports, these tenders are likely to be scheduled for SE Asian destinations.
  
  
• This week, buying indications for Chinese billets opened at $640-650/t, CFR. As the futures trended up, the bids rose to $670-680/t CFR, and heard crossed $700/t CFR levels towards end of the week. However, SteelMint has not heard of any deals concluded at these elevated levels.
  
  
• Meanwhile, a few western India-based secondary mills have sold a billet cargo to a trader at around $600/t FoB India. According to sources, "As of now, Indian billet export prices are likely to settle at $600-605/t, FoB India levels."
  
  

Iran: SteelMint's bi-weekly assessment for Iranian billets stands at $640/t FoB, down by $5 week-on-week (w-o-w).

• Iranian billet export prices fell marginally in a recent deal. Esfahan Steel Company (ESCO), one of Iran's leading steel exporters, sold 30,000 tonne (t) of billets to China through an export tender, SteelMint learned from sources. The company concluded the tender at $640/t, FoB Iran, for Aug'21 shipments.
  
  
• On the other hand, other mills remained silent, and in a wait-and-watch mode amid the Iranian national holidays and volatile Shanghai Futures Exchange (SHFE) rebar futures.
  
  
• On the other hand, trading was at a low ebb on the Iranian Mercantile Exchange (IME) . An Iranian source highlighted that thanks to the Iranian national holidays, mills kept away from the domestic market.
  
  

SE Asia: SteelMint's bi-weekly assessments of imported billet offers in SE Asia are currently at $670-680/t, CFR Manila, up by $15-20 against last week.

• South East Asian imported billets continued to remain silent for this week as well. High bid-offer disparities were witnessed amid the volatile Shanghai Futures Exchange (SHFE) rebar market.
  
  
• The chunk of the offers ranged from $680-685/tonne (t), CFR.
  
  
• However, a few Chinese traders were heard diverting their position cargo in the SE Asian region at around $700/t, CFR, SteelMint learned from market participants.
  
  
• Vietnam: The BF-route billet export offers rose sharply by $40/t, w-o-w to $690/t FoB, on uptrending futures.
  
  
• Thailand: The indicative imported billet offers in the country were at $700/t, CFR.
  
  

China: The Chinese domestic billet prices settled at RMB 5,000/t ($782/t), ex-Tangshan, including 13% VAT on 04 June ’21, up by RMB 200/t ($31/t) on a w-o-w basis amid the up-trending SHFE rebar futures.

Global billet market snapshot: