India: Billet export prices range-bound, hike in Chinese bids fuels optimism

Indian billets exports prices have remained range-bound in the last one week. An Indian mill had concluded an export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). According to market sources, the deal was concluded at around $590/t FOB. The shipment is scheduled within 45 days from the export agreement.

SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) was seen to be stable at $590-595/t FOB on 14 Dec'21.

Bids for imported billets in China rise: After remaining quiet since the past few weeks, bids for imported billets in China have recovered on the back of hike in rebar futures. SteelMint assessed China's steel billets imports prices at $605-610/t CFR on 14 Dec'21, up by around $15-20/t, w-o-w.

Recovery in Chinese rebar futures has boosted sentiments for imported billets in this country. According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,441/t ($698/t) on 15 Dec'21, witnessing a rise of RMB 59/t ($9/t), d-o-d. On a weekly basis, it rose by RMB 91/t ($14/t).

Steel billet prices in China's Tangshan fell by RMB 30/t ($5/t) w-o-w to RMB 4,330/t ($680/t), including 13% VAT on 15 Dec'21. On one side, rebar futures have increased in China, while domestic billet prices in China have seen a correction, which has lowered the gap between futures and domestic. This has fuelled some optimism in China.

However, imported billet bids in South East Asia remained subdued and were heard at around $640/t, CFR Manila.

India's domestic billet prices up sharply: SteelMint's daily steel billet index (IF grade) was assessed at INR 42,550/t exw-Raipur on 14 Dec'21, up sharply by INR 1,850/t, w-o-w.

Outlook

State-owned Vizag Steel Plant floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) with the due date being 15 Dec'21. The shipment is scheduled within 45 days from the export agreement. Owing to decent realisation in the domestic market, Indian steel mills are reluctant to lower offers for exports. However, hike in Chinese bids may give some support.