Indian billets export prices climb to 3-months high in a recent deal

Indian billets export prices moved up by around $15/tonne (t) in the deal concluded recently. With this, prices have rallied to a three-month high as the similar price levels were last seen towards end-Oct'21, as per data maintained with SteelMint.

• A state-owned mill concluded 30,000 t bloom (3sp/4sp, 150*150 mm) tender this week on 100% advance payment basis. As per sources, the tender has been concluded at around $623-625/t FOB.
  
  
• Another mill had floated an export tender for 18,900 t of billets (3sp/4sp, 125*125 mm). If sources are to be believed, the bids fetched were in the range of $624-629/t, FOB levels. However, the tender is yet to be concluded on bid-offer disparity, according to sources.
  
  

SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at $618/t FOB on 25 Jan'22, up around $10/t w-o-w.

Indian mills are still eyeing higher prices in exports in the next round of tenders to come following the sharp increase in domestic prices on coal price surge.

• Active inquiries from Egypt: Market participants speculated that the recent deal from India may have concluded for Egypt. As per market sources, inquiries from Egypt may be seen in the coming months given the semis shortage on gas supply issues in the few countries. CIS nations concluded decent deals to Egypt to tap the demand in the African market. Deals were concluded at around $680-685/t CFR. However, the manganese content material usually fetches premium compared to standard grade.
  
  
• Volatility in Chinese rebar futures, billets price stable: According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,673/t ($734/t) on 27 Jan'22, witnessing a decrease of RMB 21/t ($3/t), d-o-d. On a weekly basis, the same fell by RMB 40/t ($6/t).
  
  

However, steel billet prices in China's Tangshan remained stable for the fourth consecutive day at RMB 4,480/t ($704/t) on 27 Jan'22, inclusive of 13% VAT. However, prices rose by RMB 40/t ($6/t), w-o-w.

• Billets import prices in China remain supported: SteelMint assessed prices of China's steel billets imports at $645/t CFR on 25 Jan'22, up around $13/t against last week. However, in the last two weeks, prices spiralled by around $30-35/t.
  
  
• Billet import prices in SE-Asia edge up but away to match Indian offers : SteelMint's assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $635-638/t, CFR Manila, up around $3-5/t, w-o-w. However, prices are quite lower compared to recent prices fetched on FOB basis by Indian mill.
  
  

Outlook

Indian billets export inquiries from China are likely to slow down ahead as the Lunar New Year holidays starting from tomorrow till 7 Feb'22. Despite this, mills are unlikely to compromise in terms of prices as domestic prices are quite supportive.