This week, SE Asian billet import market saw limited bookings on down-trending Chinese rebar futures. After the Chinese Golden Week holidays, the SHFE rebar Jan'21 futures contract opened with a rise of RMB 50. However, yesterday it settled with a decline of RMB 21, against 12 Oct'20, at RMB 3,612/t. The buyers are anticipating a further drop in futures, and hence, were seen in a wait & watch mode. The anticipation has resulted in widening the bid-offer spread. The billet offers in the region seen in the range of $440-450/t, CFR levels, while bids were at $428-430/t, CFR for BF route billets.
Deals & offers-
- CIS- This week, biller export offers from the region were seen stable at $400-405/t, FoB Black Sea, against last week.
- India- This week, An Indian state-owned mill, has floated a spot sale tender for the export of 30,000 t blooms (150*150mm, 3SP/4SP grade) against 100% advance payment terms. The shipment is likely to be scheduled by 30 Nov'20. SteelMint could not confirm the tender result until the publishing time of this report. Notably, amid high bid-offer disparity, the company had to re-issue its 30,000 t spot sale, bloom export tender, twice this week. However, both the time, the company ended up canceling the tender. SteelMint assessment for billet export offers from India is at $415-420/t, FoB.
- Iran- This week, the country reported having booked some billet volumes for a SE Asian destination at $415/t on FoB Iran basis. According to sources, the shipment is likely to be shipped to Thailand. Post this deal, the offers from the country rose to $410-415/t, FoB Iran from $405-410/t, FoB Iran in last week.
- Vietnam- Hoa Phat, one of the leading steel producer and exporter, is reported having booked 40,000 t billets for China (20,000 t this week, and 20,000 t during last week). According to SteelMint sources, the company achieved the price levels of $435/t and $425/t, respectively, on FoB Vietnam basis. The company recorded four mn t steel sales in the first nine months of CY'20, up by two-folds CPLY. This week, the export offerings from the country stood at $445/t, FoB Vietnam, unchanged against last week.
- Thailand- Billet import offers in the country noted to be at $440-445/t, CFR, unchanged against last week.
This week, SteelMint assessment for billet import offers in SE Asia is at $440-445/t, CFR, unchanged against last week.