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India: Billet export price indications drop further on competitive offers, low demand

Indian BF-grade billets export price indications fell further on competitive offers from Indonesia, Iran and CIS. However, low demand has continued to weigh on trade. Ste...

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18 May 2022, 18:59 IST
India: Billet export price indications drop further on competitive offers, low demand

Indian BF-grade billets export price indications fell further on competitive offers from Indonesia, Iran and CIS. However, low demand has continued to weigh on trade.

SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $695/tonne (t) FOB on 17 May 2022, down $10/t w-o-w.

Factors weighing on Indian billet exports

  • Further drop in billet export offers from Russia: Billets (150mm) from CIS are heard at around $620/t FoB levels this week so far, down around $30/t. Successive low offers from CIS nations have pulled down price ideas in key importing countries.

  • SE Asian imported billet offers correct further : SteelMint's assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $680/t, CFR Manila, a sharp drop of $20/t on weak market sentiments. A few deals were also heard to have been concluded from Russia at lower prices. An Indonesian mill is also heard offering billets at $680/t CFR Manila.

  • Chinese domestic billets fall in tandem with SHFE rebar futures: According to data maintained with SteelMint, China's SHFE rebar futures contract for October 2022 delivery closed at RMB 4,532/t ($672/t) on 18 May 2022, a sharp w-o-w fall of RMB 149/t ($22/t). Also, on a d-o-d basis, prices fell by RMB 118/t ($17/t).


Meanwhile, steel billets prices in China's Tangshan decreased by RMB 40/t ($6/t) to RMB 4,520/t ($670/t) on 18 May 2022, inclusive of 13% VAT. Prices fell sharply by RMB 120/t ($18/t) w-o-w amid falling futures.

Lack of clarity in the market and competitive offers from CIS nations at the same time led to a drop in Indian billet bids. Global ferrous scrap prices have corrected by $25/t w-o-w which in turn has put billet prices under pressure. With domestic steel prices falling in India and the approaching monsoons, mills may again turn active in exports.

 

18 May 2022, 18:59 IST

 

 

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