Indian Billet Export Prices Up by USD 10 in Recent Deal

India is noted to have an active presence in the billet export market these days. It was being observed, almost every week, since Apr'20, the country is actively booking billets. The shipments are largely booked to China and SE Asia.

It was yet another week when the country booked a sizeable quantity of billets.

An Indian mill concluded deal fo 60,000 MT billets (150*150mm, 4SP grade) in recent. The deal value was noted to be USD 375-378/MT, FoB, and the shipment is scheduled for the end of Jun'20. It is expected, the cargo will be shipped to China, SteelMint learned from sources. With this, SteelMint's billet export assessment has increased to USD 375-380/MT, FoB India for 150*150mm.

Even before, at the end of the last week, the company had booked 60,000 MT billets at USD 365-370/MT, FoB.

Last week, another Indian private mill was heard to have concluded a billet (165*165mm) export deal at USD 380/MT, CFR China.

Meanwhile, the billet import offers in China were noted to be at USD 385-390/MT, CFR levels. However, during the start of this week, the country was reported to book billets from Indonesia at USD 400-405/MT, CFR. Although, it is worth noting that Indonesia is exempted from a 2% import tax in China. However, SteelMint could not confirm the quantity during the publishing time of this report.

Domestic billet prices in China is witnessing an upward since, end of the last week. The domestic billet prices in China are currently at RMB 3,270/MT, ex-Tangshan, tax-inclusive.

The rise in prices is primarily due to the ongoing political conference in Beijing; 21-22 May'20 along with increased steel consumption. According to market sources reported to SteelMint, the conference would focus on China's next Economic moves. It is also expected that the conference outcome could limit production and transportation activities. Thus, prices and sentiments in the country got positively driven.