Indian Billet Export Market Remains Active; Deals Reported

Indian billet export market continues to observe deals from Indian mills. Soon after the Chinese market resumed; post-labor-holidays, an Indian private mill managed to book a decent quantity to China. According to trade sources reported to SteelMint, the mill booked approximately 30,000 MT billets and the deal value was noted to be around USD 375/MT, CFR. The shipment is scheduled for Jun'20.

Earlier this week, another Indian mill was reported to conclude 30,000 MT spot billet (3SP/4SP) export tender at USD 350/MT, on a FoB basis on a 100% advance payment basis.

The current billet import offers in China are at the levels of USD 370-375/MT, CFR basis, a trade source mentioned to SteelMint. "At these price levels, the marketers are able to enjoy decent profit margins", he further added. However, he; the trade source, concluded by saying "in the near term, the market could witness a downtrend, as there would be bountiful inventory levels in China".

Meanwhile, the domestic billet prices in China have increased post-holidays and are at RMB 3,130/MT, ex-Tangshan, including all taxes, up RMB 10 against yesterday.