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India: Subdued bids weigh on billet export market sentiments

Falling steel and scrap prices globally continue to weigh on Indian billet export prices. As per market sources, Indian primary mills are still looking for price levels o...

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BigMint Bureau

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22 Jun 2022, 17:55 IST

India: Subdued bids weigh on billet export market sentiments

Falling steel and scrap prices globally continue to weigh on Indian billet export prices. As per market sources, Indian primary mills are still looking for price levels of around $610-620/t FOB, considering cost of production. However, the price levels are not in line with the current market scenario. Deals have dried up due to low market interest.

A few private players are heard offering billet for export but prices are yet to be discovered. However, other market participants indicate that Indian billet export offers should be lesser than the $570-580/t CFR level for SE Asia.

Markets overview

SE Asian imported billets offers down sharply: SteelMint's assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $610/t, CFR Manila, down around $27-28/t w-o-w due to low market demand.
Billet export offers from Russia inch down further: Competitive billet offers (150mm) from the CIS are heard at around $545/t FOB this week, down $23/t w-o-w.
Casacading Chinese billet prices:SteelMint's assessment of imported billets (150*150mm, 3SP) into the China stood at around $525/t CFR, down sharply by around $75/t w-o-w on the falling furtures market.
Chinese SHFE rebar futures slump: Chinese SHFE rebar futures fell sharply this week. According to data maintained with SteelMint, China's SHFE rebar futures contract for October 2022 delivery closed at RMB 4,128/t ($615/t) on 22 June, a sharp fall of RMB 419/t ($62/t) w-o-w.

Meanwhile, steel billet prices in China's Tangshan increased by RMB 20/t ($3/t) to reach RMB 3,920/t ($584/t) on 22 June 2022, inclusive of 13% VAT. However, prices fell sharply by RMB 460/t ($68/t) w-o-w. Falling rebar futures, weak demand and subdued finished steel sentiments pulled down billet prices.

Outlook

Indian billet export prices are expected to remain weak as prices in other regions such as China are down sharply this week. Falling global prices are turning the outlook gloomier.