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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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.