Indian billet export prices continue to head north in recent deal

Indian mills managed to achieve higher prices in a recently-concluded billet export deal. Hike in rebar futures, Chinese steel production cuts, loss in steel output by Iranian mills due to power outages have kept demand for Indian billets firm in the global market.

The tender was concluded by an Indian state-owned mill for 18,900 tonnes (t) of billets (150x150mm, 4SP/5SP grade), scheduled for mid-Sept'21 delivery. The deal has been concluded at around $640-645/t FoB, as per sources.

Last week, another Indian state-owned mill had concluded a billet export deal for 150x150mm, 3SP/4SP grade material at $630-635/t FoB to a non-Chinese destination.

SteelMint's bi-weekly assessment of Indian billet (150mm, 3SP/4SP) exports stood at $640/t FoB on 27 Jul'21, up $10/t against the previous assessment done on 23 Jul'21.

Recent billet export tenders:

• An Indian state-owned steelmaker had floated an export tender for 30,000 t of steel blooms of size 150x150mm and 3sp/4sp grade for mid-Sept shipment. According to sources, the tender was cancelled due to bid-offer disparity.
  
  
• Vizag Steel Plant, a state-owned steelmaker, floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3sp/4sp grade). The tender floated is against 100% advance payment terms with the due date being 28 Jul'21. The shipment is scheduled within 45 days from the export agreement.
  
  
• Vedanta-owned and eastern-India based Electrosteel Ltd (ESL) had floated three export tenders for 30,000 t of steel billets, wire rods and rebar for Sept'21 shipments, as per sources. The outcome was still awaited till the time of publishing this report.
  
  

Chinese domestic billet prices supported by futures: Steel billet prices in China's Tangshan today stood at RMB 5,240/t ($808/t), inclusive of 13% VAT. Prices are hovering around RMB 40/t above the closing of last week. The most active Chinese rebar futures contract for Oct'21 delivery stood at RMB 5,753/t ($891/t) in the evening trading session, witnessing a sharp hike of RMB 95/t ($15/t) d-o-d.

SteelMint's assessment for Chinese bids for imported billets fell slightly today to around $705-710/t CFR levels from $710-715/t CFR seen on 27 Jul'21.

As per reports, the Chinese mills have shown a decent production cut in finished steel that led to strong imported billet offers.

Indian domestic billet prices up: SteelMint's daily billet index was assessed at INR 42,800/tonne (+INR 400) exw-Raipur on 28 Jul'21. On a weekly basis, prices have increased by around INR 900/t. The index rebounded following improved demand from the local and western region-based mills. Demand showed an upward trend due to prevailing optimism that the primary steel mills are likely to keep prices strong for Aug deliveries.