Indian billets export market quiet amid year-end holidays

The Indian billets export market continued to remain less active for yet another week. No seaborne BF-route billets export deal was heard getting concluded so far this week.

SteelMint's bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at $600/tonne (t) FOB on 28 Dec'21. Prices have fallen to eight-month lows as per data maintained with SteelMint.

Meanwhile, most of the sellers in the Indian market have adopted a wait-and-watch mode, waiting for the ongoing holidays to end.

A steel major was heard to be in no hurry for its next tender as it is waiting for the billets export market to improve. Also, for the time being, mills have less material to offer for exports. Price indications from a private mill were heard at around $620/t FOB levels.

Chinese rebar futures weigh down spot prices

According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,315/t ($677/t) on 29 Dec'21, witnessing a marginal decrease of RMB 4/t ($0.63/t), d-o-d. However, on a weekly basis, it fell sharply by RMB 123/t ($19/t).

Following the drop in the futures and concerns over subdued demand, steel billet prices in China's Tangshan fell to RMB 4,270/t ($670/t) on 29 Dec'21, inclusive of 13% VAT, down by RMB 120/t ($19/t), w-o-w.

SteelMint's assessed prices for China's steel billet imports stood at $600/t CFR on 28 Dec'21 against $605/t CFR last week. Prices fell in the absence of firm bids and a sharp drop in rebar futures.

Prices range-bound w-o-w in SE Asia

Bids for imported billets in South East Asia remained range-bound w-o-w and were heard at around $630-635/t, CFR Manila.

"Most of the buyers in the Philippines are on leave. No activity has been witnessed recently," said a trader.

Outlook

Indian billets export market is expected to remain less active with Chinese holidays coming up at a time when the uncertainty of the new corona variant prevails across the globe. However, State-owned Vizag Steel Plant has floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The tender was floated against an irrevocable letter of credit, as per RINL format, to be established within five banking days' payment terms, with the due date being 4 Jan'22. The shipment is scheduled for mid-Feb'22.

*Correction: Graph has been updated