Weekly: Global billet market overview
Global billet prices witnessed a further rise after China announced the removal of import duty from May '21 on non-ASEAN billets, as it would allow sellers to enjoy zero import tax. After this, the Chinese buying indications lifted for Non-ASEAN billets on a substantial rise in futures and physical markets. However, this week limited trades are witnessed on bid-offer disparity as the bids didn't rise in parallel with the offers, especially in the SE Asian market. Moreover, Chinese holidays restricted buying activities to some extent.
Russia: Till mid-week, SteelMint didn't hear substantial offerings from the Black Sea and Vanino port (Far Eastern Part of Russia). The mills were in a wait-watch mode as China removed the import duty on the ferrous products, including billets. However, in the latter half of the week, a few Russian Far East mills heard asking $ 640/t, FoB Vlad/Vanino. SteelMint learned from a trader.
India: SteelMint's bi-weekly assessment for India billets (150*150, BF route, FoB East coast) is $610-615/t, up by $5-10 against last week.
- This week, Indian billet export prices continued to remain stable. The trade activities remained silent on the primary mills' side in the absence of firm offers.
- However, an Indian state-owned mill, has floated export tenders for 80,000 t billets and blooms of sizes- 65*65mm, 90*90mm, 150*150mm, and 200*200mm. The tender due dates are 03 May '21 (for 150*150mm and 200*200mm) and 05 May '21 (for 65*65mm and 90*90mm). The shipment is likely to be scheduled by the end of June '21 for all sizes.
- During our conversation with an international trader, we learned that a few private primary mills are enjoying supernormal margins in finished long products instead of semi-finished products like billets. For instance, a leading private primary mill was heard having sold a sizeable rebar lot in Hong Kong at $685-690/t, CFR. These mills are likely to offer billets actively by June '21 as the construction activities will slow down in domestic market, said another international trader.
- Secondary mills turn active for billet exports: A deal for 10,000 t IF route billets from India was concluded for Philippines at $590/t FoB for June delivery.
Iran: SteelMint's bi-weekly assessment for Iranian billets is $595-600/t, up by $10 against last week.
- Iranian billet export prices continue rising. After deals getting concluded at around $600/t FoB towards mid of this week. Iranian billet export offers climbed to a new high in a recent deal concluded towards weekend at $620/t FoB for China.
- Iranian billet domestic prices rise marginally, with domestic demand being stable: This week, the domestic billet prices at the Iranian Mercantile Exchange (IME) witnessed a marginal rise of IRR 940/kg ($4/t) to reach IRR 118,832/kg ($499/t). According to SteelMint sources, the demand in the domestic market is stable post-Ramadan.
SE Asia: SteelMint's bi-weekly assessment for Indian billets is currently at $675-680/t, CFR up by $20-25 against last week.
- This week, SE Asian imported billet market witnessed limited trades on bid-offer disparity. Global billet offers rose after China announced the removal of import duty from May '21 on non-ASEAN billets. After this, the buying indications lifted to $670/t, CFR for Non-ASEAN billets on a substantial rise in futures and physical markets. Chinese bids have subsequently pulled up the buying indications from the SE Asian market, but not in parallel with the offers. The offers in the region are heard ranging from $680-690/t, CFR. However, bids were standing at $670-675/t, CFR.
- Meanwhile, we also heard that an Indian cargo (130mm, 5SP grade) sold in the Philippines at $685/t, CFR. However, SteelMint could not confirm the seller and the quantity until the publishing time of this report. Apart from this, a deal for 10,000 t IF route billets from India was concluded for Philippines at $590 FoB for June delivery.
- Vietnam: The IF route billet export offers from the country heard having at $650/t, FoB. No, BF route offers heard for this week.
- Thailand: The imported billet offers in the country witnessed having at $670/t, CFR, up by $10-15/t against last week. During Mar '21, the billet imports in Thailand recorded at 0.44 mn t, up by 19% m-o-m. Oman, Japan, and Russia stood as the predominant suppliers during the period under consideration.
China: This week, the Chinese domestic billet prices registered a w-o-w rise of RMB 40/t ($6/t). The rising rebar futures pulled up the domestic billet prices. Yesterday, the prices of commonly traded Q235 billet 150mm diameter settled at RMB 4,990/t ($771/t) in Tangshan, including 13 % VAT.
Global billet market snapshot: