Falling Chinese steel futures continue to weigh down India billet export market sentiments

The Indian billet exports market continued to remain silent following the sliding Chinese steel futures. This resulted in the absence of firm bids.

According to data maintained with SteelMint, China's SHFE rebar futures contract for Jan'22 delivery settled on 27 Oct'21, at RMB 4,773/tonne (t) ($746/t), witnessing a sharp decline of RMB 636/t ($99/t), w-o-w.

Following the steep decline in the futures and concerns over subdued demand, steel billet prices in China's Tangshan fell to RMB 4,900/t ($766/t) on 27 Oct'21, (including 13% VAT), down by RMB 320/t ($50/t), w-o-w.

"There are no firm bids at the moment after the steep decline in Chinese steel futures," saida trader.

Dull week for deals

An Indian PSU had floated a tender for 20,000 t of billets (90x90mm, C20MMn Gr. A), 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) with 26 Oct'21 as the due date. As per market sources, the tender has been cancelled perhaps on less active participation. The delivery is scheduled for end-November.

Mills are finding it tough to conclude export deals at their expected prices which is perhaps driving them to the domestic market for better realisations. However, mills expectations for 150*150mm/BoF route bloom have come down to around $610/t FOB against $640-650/t FOB levels seen a week ago, a few trade sources said.

Indian domestic billet prices rise after falling last week

SteelMint's daily steel billet (IF-route) index wis assessed at INR 45,900/tonne (t) (661) exw-Raipur on 27 Oct'21. Spot buying was average on floated offers as healthy orders were placed two days back by a majority of the buyers. Thus, the buyers held bookings yesterday in the face of higher offers.