Indian billet export prices rise in a recent deal

Indian billet export prices have moved up sharply in a recent deal. An Indian mill reported having concluded a 60,000 t bloom export tender floated for spot sale. According to SteelMint sources, the company managed to achieve a price level of $425/t, FoB India, up by $10 against previously concluded tender. The base price set for the tender was $420/t, FoB India. The shipment is likely to be scheduled by the mid-Oct'20 for China.

Although, the other Indian primary mills continued staying out of the global billet market with a focus on the domestic market.

Yesterday, the SteelMint assessment for IF grade billets (Exw Raipur) was at INR 30,150/t ($410/t), up by INR 650(~$9) from last week's prices.

SteelMint assessment for Indian billet export offers (150*150mm) has risen by $5 w-o-w and is at $425-430/t, FoB India.

Limited billet availability in the global market with rising raw material prices are pulling the global billet prices-

Along with India, all other prime billet exporting nations have curbed their billet export allocations on improving respective domestic demand, which was affected due to the COVID-19 outbreak. It has led to the limited availability of billets in the global market, which is pulling the global billet prices, supported by increasing global scrap prices.

On the other hand, the domestic billet prices in China are on a continuous rise and have reached RMB 3500/t ($512/t) levels today, ex-Tangshan, including 13% VAT. While, imported billet prices in the country are ranging between $440-445/t, CFR, excluding duty, taxes, and local freight. The event is likely to drive sizeable billet imports in the near short term.