Indian billet export market silent in absence of firm bids

The Indian billet exports market continues to remain silent so far this week after witnessing limited participation that resulted in cancelling of export tenders issued by companies.

The recent Indian billet export tenders floated by mills saw almost no participation due to volatile Chinese steel futures. Also, demand concerns over steel production cuts in China weighed down bids.

An Indian steelmaker had floated an export tender for spot sale of 30,000 t of BF blooms (150x150mm, 3SP/4SP grade) last week but which got cancelled due to low bids and limited participation. The shipment had been scheduled within 45 days from the export agreement.

In another instance, two export tenders were floated for 25,000 t of steel billets (65x65mm, grade: C20MMn Gr.) and wire rod coils (5.5-12mm). Both had due date scheduled for 23 Aug'21 and shipment in the first week of Oct'21. These tenders were also heard to have fetched a dull response.

One of the traders told SteelMint that the expected billet export prices may come down further in the next few days as China's buying has slowed down from quite a few weeks.

SteelMint's bi-weekly assessment of Indian billets (150mm, 3SP/4SP) exports stood at $595-605/t FoB on 23 Aug'21, lower by around $13/t against the last assessment made on 20 Aug'21.

Chinese steel futures remain volatile : According to data maintained with SteelMint, China's re-bar futures contract for Jan'22 delivery closed today at RMB 5,236/t ($809/t), rising marginally by RMB 1/t against yesterday's close and RMB 5,102/t assessed earlier in the week.

Domestic billet prices in China increase RMB 20/t ($3/t): Steel billet prices in China's Tangshan rose d-o-d by RMB 20/t ($3/t) on 25 Aug'21. Domestic billet prices stood at RMB 4,950/t ($764/t) inclusive of 13% VAT.

Active tender:

Vizag Steel, a State-owned steel company, has floated a spot sale export tender for 60,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender has been floated against 100% advance payment terms with the due date being 2 Sept'21. The shipment is scheduled for end of October. The buyer has to quote for a minimum quantity of 30,000 t.