Indian billet exports market subdued, prices at two-month low

The Indian billet exports market continued to remain less active for yet another week. SteelMint's price assessment for Indian billet exports (150*150 mm, 3sp, BOF route) currently stands at $605-610/t FOB. Prices have fallen to two-month lows as per data maintained with SteelMint.

"The market is completely dead as there are no firm indications from China and very limited bids from South East Asia," said a trader.

Drop in Chinese futures continue to weigh on spot prices - SteelMint's assessed prices for China's steel billet imports stood at $625/t CFR on 9 Nov'21 against $660/t CFR last week. Prices fell in the absence of firm bids and volatile rebar futures.

According to data maintained with SteelMint, China's SHFE rebar futures contract for Jan'22 delivery settled on 10 Nov'21, at RMB 4,246/tonne (t) ($664/t), witnessing a sharp decline of RMB 139/t ($22/t), w-o-w.

Following the volatility in the futures and concerns over subdued demand, steel billet prices in China's Tangshan fell to RMB 4,450/t ($696/t) on 10 Nov'21, (including 13% VAT), down by RMB 450/t ($70/t), w-o-w.

Deals dry up

A government-owned Indian steel mill had floated an ocean sale export tender for 30,000 tonnes of steel blooms (150x150mm, 3SP/4SP grade) on FOB ST delivery basis against an irrevocable letter of credit on payment-at-sight terms. The due date for the tender was 5 Nov'21. Due to limited participation, the tender has been cancelled, as per the latest reports available with SteelMint.

India's billet prices slump to one-month low

SteelMint's daily steel billet index (IF route) was assessed at INR 43,600/tonne (t) (-INR 900) exw-Raipur on 9 Nov'21. The index fell to a one-month low. The index continued to drift down on the back of sluggish demand, rising trade discounts and increasing stocks of finished steel at major locations across the country.

Outlook

Rashtriya Ispat Nigam Limited's (RINL's) November exports are expected to be lower owing to temporary shutdown of one of its three blast furnaces. Blast furnaces 3 (BF3) underwent a 10-15 days maintenance shutdown due to a technical glitch. This may impact the billet export allocations. However, declining global prices remain a concern.

SAIL has floated an export tender for 18,900 t of prime mild steel non-alloy concast billets from its IISCO Steel Plant in Burnpur, West Bengal. The cargo is scheduled for shipment on 15 Jan'22. Buyers are required to quote bids on SAIL's website latest by 16:00 IST on 12 Nov. The offer is valid till 16 Nov'21.