Indian billet export market remains silent on the bid-offer disparity

The Indian billet export market continues to remain silent for this week as well. However, the market saw dramatic moves as the state-owned mill reissued the bloom export tender, twice amid limited participation, supported by high bid-offer spread. However, the company ended up canceling both the tenders, sources said to SteelMint. According to sources, the base price for spot tenders was at around $418/t, FoB India.

Trade sources highlighted price expectations from Indian mills are higher by $5-7/t than the bids received.

Yesterday, the company has floated another tender for the export of 20,000t (200x200 mm, 3SP/4SP grade) blooms and 10,000t (65x65mm, IS 2830) billets. The shipment is likely to be scheduled by 25 Nov'20, and the tender due date is 19 Oct'20.

On the other hand, other primary mills continue to stay out of the Ocean market for this week as well, with a focus on a domestic market.

SteelMint assessment for Indian billet export offers (150*150mm) is at $415-420/t, FoB unchanged against last week.

China saw preferring ASEAN billets over Indian- During a conversation with a trade source, SteelMint learned currently, ASEAN imports are reasonable than Indian imports in China, hence, buyers are preferring buying billets from ASEAN nations.

SteelMint Analysis on billet imports in China-

Vietnam's Hoa Phat reported having booked 40,000 t billets for China (20,000 t this week, and 20,000 t during last week). According to SteelMint sources, the company achieved the price levels of $435/t and $425/t, respectively, on an FoB Vietnam basis.

The Chinese bids for Indian billets have seen bidding $432/t, CFR (equivalent to $497/t, including 2% import duty and 13% VAT)