Global Billet Market Overview: Week 28, 2019

Billet export offers from CIS witness a drop - This week offers from CIS nations were assessed at USD 415-420/MT, FoB Black Sea, less by USD 10/MT against last week The sentiments were reported weak in the region.

Iran Billet Export Market Softens amid Absence of Trades- Iranian mills have kept billet export offers unchanged this week, however l like last week, this week also left the market with no deals. According to SteelMint, this week Iranian billet export assessment stands at USD 380-385/MT FoB, for Aug- Sep’19 shipment, down by USD 5 against last week over softening market sentiments

It seems Iranian ministry is administrating well to mitigate the impact of U.S. sanctions. Clues can be witnessed with a recent agreement, which is signed to increase Iran's annual steel production capacity by 10 MnTPA. The agreement was signed at Iranian Mines & Mining Industries Development & Renovation Organization on 9 Jul’19, to establish a steel mill in Persian Gulf Special Economic Zone in the form of a consortium, Financial Tribune reported

South East Asia billet market: South East Asia billet import offers are assessed around at USD 455-460/MT, CFR levels, this week, the trade sentiments are reported marginally weak in the region. Prices have softened by USD 5-10/MT against last week.

India: SAIL Durgapur Floats Billet Export Tender- Steel Authority of India - a government of India Company has invited ocean export tender for billets. The tender quantity is reported to be 16,200 MT. The cargo will be shipped from Haldia port and shipping is scheduled by 31 Aug’19. The tender is put up for Prime Mild Steel Non-Alloy Concast billets, size 125*125 mm offered from Durgapur Steel plant and has following specifications - C%:0.27-0.32, Mn:0.70-.90, S: 0.05 Max P: 0.05 Max Si: 0.10-0.35

The said invitation bid service has been activated by SAIL for entry of data at 15:30:00HRS [IST] of 10 Jul’19.  The last date for bid submission is 15 Jul’19 by 17:00:00HRS [IST].

 India- A news was heard for induction grade billet export bookings from Western India to SE Asia; however quantity and prices could not be confirmed at the time of publishing this report.

Vizag Steel concluded ocean export tender for size 150*150mm- Rashtriya Ispat Nigam Limited (RINL)- the state-owned steel maker under the Ministry of Steel, had floated an ocean billet export tender on 27 Jun’19 of quantity 50,000 MT, for sizes; 65*65, 77*77, 90*90 and 150*150 mm. According to market sources report to SteelMint, the company has concluded 150*150mm billet at around USD 425/MT, FoB India.

Vietnam billet offers - This week Vietnam’s BF grade, 5SP billet offers are at USD 465/MT, CFR Manila, while that of IF grade, 5SP are at USD 460/MT, CFR Manila.

China domestic billet rose sharply: This week Chinese domestic billet prices settled at RMB 3,640/MT, up RMB 20 against last week. This week, billet trade sentiments in China were reported strong.

China booked billets from Qatar & Iran- Chinese government has imposed environmental restrictions on blast furnace production. To fill this gap left by billet production cuts of BF grade, Chinese steel manufacturers have now start importing billets from Qatar & Iran.
In recent, one of the prime steel manufacturers from China has booked around 200,000-300,000 MT billet from the Middle East. The shipment is scheduled for Jul’19. The trade value was reported to be USD 440-450/MT CFR.