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Indian Billet Manufacturers Eye Export Market as Rupee Falls All Time Low

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28 Jun 2018, 12:07 IST
Indian Billet Manufacturers Eye Export Market as Rupee Falls All Time Low

Indian rupee falls 1-2% in last few days to INR 68.92 per USD and around 8% in 2018

The interest of Indian billet exporters has increased after currency dropped all time low on falling crude oil prices in global markets.

SteelMint learned from market sources that Indian mills have started offering billets in export market on better realization due to weak currency and consistently falling prices in domestic markets.

Notably, prices have corrected by INR 1,500-2,000/MT (USD 21-29) in last few days.

"Some Global buyers are showing interest in buying Indian billets, therefore we are considering to increase our allocation." said a manufacturer based in the western region of India.

Indian billet tender receives decent response

There are some positive vibes in the market post two billet export tender, which expired today.

Recent billet export tenders by two state-owned mills have received a decent response.

According to sources, both the tenders managed to receive bids in the range of USD 510-520/t FOB India levels.

Iran's absence will benefit Indian mills

Export of billet from Iran is likely to remain low in coming months on fresh sanctions imposed by US government. Not many buyers are willing to deal with Iranian mills at the moment.

Iran, which was once considered to be next China in terms of exporting billets, may lose its charm. Iran exported 4.22 MnT billets in the year 2017. Most of its exports were made to South East Asian counties like Thailand and Indonesia.

Indian mills will be benefited certainly if Iran remains absent from the market. Since voyage time and freight cost to SE Asia is comparatively lower than Iran.

28 Jun 2018, 12:07 IST

 

 

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