Indian billet export prices rebound as Chinese steel futures recover

After remaining mute for the last one week, the Indian billet exports market gained momentum tracking recovery in Chinese steel futures. The recent Indian billet export tenders floated by a primary mill managed to fetch improved bids.

A state-owned Indian steelmaker has floated an export tender for spot sale of 30,000 tonnes (t) of steel blooms (BF-route, 150x150mm, 3SP/4SP grade). The tender floated is against 100% advance payment terms with the due date being 11 Aug'21. The shipment is scheduled by Sept'21. According to market sources, the deal has been concluded at $625/tonne (t) FoB.

SteelMint's bi-weekly assessment of Indian billets (150mm, 3SP/4SP) exports stood at $615/t FoB on 10 Aug'21. Thus, prices have increased by around $15/t in the recent deal.

SteelMint also heard one IF-(induction furnace)-grade billet deal done from Kandla for 3,000 t (3sp grade) at $610-615/t FoB.

Chinese steel futures rebound

Chinese steel futures on the Shanghai Futures Exchange (SHFE) have rebounded, showing an uptrend since the last couple of days. The most actively traded rebar futures' Oct contract increased by around RMB 143/t ($22/t) w-o-w to close at RMB 5,597/t.

Chinese domestic billet prices up: Steel billet prices in China's Tangshan rose d-o-d by RMB 30/t ($5/t) on 11 Aug'21. Domestic billet prices stood at RMB 5,110/t ($788/t), inclusive of 13% VAT after remaining stable for two successive days. Overall, billet trading remained modest, SteelMint notes.

However, as per sources, Manila and South East Asian markets are under stress owing to increasing Covid-19 cases there following which the respective government imposed lockdowns . This resulted in all trading activities getting hampered.

Other Indian billet export tenders lined up:

• State-owned steelmaker Steel Authority of India Ltd. (SAIL), has floated an export tender for 18,900 t of steel billets (150x150mm, 4SP/5SP grade) for mid-Oct'21 shipments, as per latest reports. The due date for the tender is 16 Aug'2021.
  
  
• Vizag Steel Plant, a state-owned steel company, has floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender has been floated against 100% advance payment terms with the due date being 11 Aug'21. The shipment is scheduled within 45 days from the export agreement.