Indian billet export prices rise by $10/t, w-o-w, on improved trades

The Indian billet export market has gathered momentum following a recovery in bids, Chinese steel futures and global price uptick. SteelMint's bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at $600/tonne (t) FOB on 12 Jan'22, this week, up by $10 w-o-w.

• An Indian mill had floated a spot sale export tender for 60,000 t of steel blooms (150x150mm, 3SP/4SP grade). The shipment is scheduled within 45 days from the export agreement. As per sources, the deal has been concluded at around $595/t FOB.
  
  
• Another major steel mill from India concluded a special grade billet export deal for 20,000 t ( 165 mm and 150 mm, 5sp) to South-east Asia recently. However, the price could not be confirmed till the time of publishing this report.
  
  

Rebar futures trigger recover in billet sentiment : According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,632/t ($728/t) on 12 Jan'22, witnessing a rise of RMB 43/t ($7/t), d-o-d. On a weekly basis, the same rose sharply by RMB 188/t ($29/t).

Following a recovery in futures, steel billet prices in China's Tangshan rose to RMB 4,400/t ($691/t) on 12 Jan'22, inclusive of 13% VAT, an increase of RMB 120/t ($19/t) w-o-w and an increase of RMB 30/t ($5/t), d-o-d.

SteelMint assessed prices of China's steel billets imports at $610/t CFR on 12 Jan'22, up around $10 against last week.

Billet import prices improve: In the last few days quite a few deals happened for Manila and other Asian markets that pushed up imported billet prices. A Russian steelmaker concluded a billet deal (100mm and 150mm, 3sp-5sp) at $630-635/t CFR last week.

Offers from Indonesia also increased sharply to $630/t CFR.

Other tenders lined up - Vizag Steel has floated two ocean sale export tenders for 20,000 t of billets (90x90mm, C20MMn Gr. A) due on 17 Jan'22.

Recovery in global billet prices may turn other players active in the billet export market.