Weekly: Global billet market overview

This week, limited billet volumes reported having traded in the global billet market. However, bid-offer disparity continued its existence on the volatile Shanghai Futures Exchange (SHFE) rebar market. On the other hand, the limited availability of vessels amidst stricter port guidelines in China impeding trade, especially on the Indian side.

India: Mills continued to remain active in exports given the subdued domestic demand. State-owned steelmaker, Vizag Steel, floated four export tenders amounting to a total of 90,000 t of billets and blooms for end-Aug'21 shipments. SAIL also floated a tender for 18,900 t of billets for end-Aug shipments.

Indian mills are expecting price levels of $605-610/t FoB, market sources informed. However, higher freight rates continued to impact FoB prices for Indian mills. Freights for SE Asian markets are learned to be at around $70-80/t.

“The recently floated Indian billet export tenders didn’t receive active participation owing to cargo delivery issues. The mills may float spot export tenders again in the coming week”, highlighted a trader.

SteelMint's bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) was recorded at $600-605/t, FoB.

Iran: Iranian billet export offers witnessed a drop this week. According to a few major steel mills in the country, billet export offers have come down to $610-615/t FoB levels.  As per sources, one of the leading steel exporters in Iran was heard to have concluded a billets tender for $605/t FoB levels. However, it could not be confirmed whether the deal has been concluded or not.

Another leading steel mill in Iran, Chadormalu Mining and Industrial Company, is likely to float a 30,000-t billet export tender next week.

SteelMint's bi-weekly assessment for Iranian billets (150*150mm, BF route, FoB east coast) was recorded at $607/t, FoB on 2 July.

South-East Asia - South East Asia's imported billet prices remained supported this week. However, not many deals were recorded. Offers for blast furnace (BF) route billets were heard at around $680-685/tonne (t), CFR Manila, a trader informed. SteelMint's bi-weekly assessments of imported billet offers into SE Asia are currently at $678/t, CFR Manila, up by $5/t against last week.

• Thailand: Indicative imported billet offers into the country are hovering in the range of $665-680/t CFR from various origins.
  
  
• Vietnam: BF-route billet offers from the country inched down by $5/t, on a w-o-w basis, amidst the volatile rebar futures market. According to SteelMint sources, BF-route offers are at $645/t FoB.
  
  

China: According to data maintained with SteelMint, the Shanghai Futures Exhange (SHFE) rebar futures Oct'21 contracts on 02 Jul, settled with a d-o-d drop of RMB 22/t ($3/t) to RMB 5,124/t. Domestic billet prices in China stood at RMB 4,910/t ($756/t) in Tangshan, including 13% VAT. On the other hand, price indications for imported billets into China are heard at around $660-665/t, CFR.