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Indian billet export market slows down on lower bids from China

The Indian billet exports market has slowed down this week after Chinese steel futures witnessed significant drop around last Friday and Monday. The recent Indian billet ...

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4 Aug 2021, 19:00 IST
Indian billet export market slows down on lower bids from China

The Indian billet exports market has slowed down this week after Chinese steel futures witnessed significant drop around last Friday and Monday. The recent Indian billet export tenders floated by a couple of primary mills fetched dull response and trading sources were skeptical that mills may not be ready to conclude tenders at the bids received.

"If they (mills) want more prices they will have to wait for recovery in steel futures and Chinese bids," highlighted a trader.

SteelMint's bi-weekly assessment of Indian billets (150mm, 3SP/4SP) exports stood at $620/tonne (t) FoB on 3 Aug'21, down sharply by $20/t against the previous assessment done on 31 Jul'21.

Recent billet export tenders and outcome

  • An Indian State-owned steelmaker had floated an export tender for 60,000 t of steel blooms of size 150x150mm and 3sp/4sp grade for Sept shipment. According to sources, the tender was cancelled due to bid-offer disparities. As per sources, the company was expecting around $615/t FoB. However, bids fetched were close to $600/t FoB levels.

  • Another State-owned steelmaker floated a spot sale export tender for 18,900 t of steel blooms (125x125mm, 4sp/5sp grade). The tender floated was against 100% advance payment terms with the due date being 3 Aug'21. The tender was heard to have been cancelled amid expectations of around $640-645/t FoB. The company may go for re-tendering.

Chinese steel futures fluctuate: Chinese steel futures on the Shanghai Futures Exchange (SHFE) have been fluctuating strongly, showing an overwhelming downtrend at close for the last couple of days. Yesterday, both the rebar and HRC indices were trading down 4-5% mid-day to close 3% down. However, rebar futures Oct contract increased by 4% d-o-d on 4 Aug'21 to close at RMB 5,454/t.

Chinese domestic billet prices drop tracking futures: Steel billet prices in China's Tangshan today stood at RMB 5,100/t ($789/t), inclusive of 13% VAT. Prices are down by around RMB 160/t below the closing of last week. SteelMint's assessment for Chinese bids for imported billets dived down by around $29/t to $688-693/t CFR levels from $715-720/t CFR a week ago.

Indian domestic billet prices up: SteelMint's daily billet (IF route) index was assessed to be stable at INR 43,400/t exw-Raipur on 4 Jul'21. On a weekly basis, prices have increased by around INR 600/t. The index increased on improved demand in the local market and hike in finished long prices by Indian primary mills.

 

4 Aug 2021, 19:00 IST

 

 

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