Indian billet export offers witness marginal rise; outlook divided

Indian billet prices have climbed up, post a state-owned steelmaker concluded a 30,000 t (150*150mm, 3SP/4SP) bloom export tender floated for spot sale towards the end of last week. According to SteelMint sources, the company managed to achieve a price level of $430/t, FoB India, up by $5 against previously concluded tender. The shipment is likely to be scheduled by 31 Oct'20.

SteelMint assessment for Indian billet export offers (150*150mm) has risen by $2-3 w-o-w and is at $430/t, FoB India.

SAIL's 16,200 t billet export tender under negotiations- Steel Authority of India Limited (SAIL) has floated an export tender for 16,200 t billets (125*125mm, 4SP/5SP) from its Durgapur Steel Plant for the end Nov'20 shipments. The due date of the tender was 15 Sep'20. The company is expecting a price level of $430/t, FoB India.

On the other hand, private mills continue to stay out of the global billet market with a focus on the domestic market.

India's billet/bloom export shipments in Aug'20, have witnessed an m-o-m decline of 50% on improving realization in the domestic market. According to the port data maintained with SteelMint, the country's export shipments for billets and blooms stood around 0.6 mn t. The same recorded at over 1 mn t in Jul'20.

Yesterday, the SteelMint Index for IF grade billets (Exw Raipur) was at INR 29,700/t ($404/t), down by INR 450(~$6) from last week's prices.

Outlook- Steel futures in China have fallen sharply today on bearish market sentiments. SHFE rebar closed at RMB 3,575/t today, down by RMB 200 compared to the beginning of Sept'20. In addition to it, global scrap prices have shown some signs of softening. Hence market participants are lacking clarity on future market trends.