Indian billets exports market silent on limited bids
The Indian billets exports market turned silent this week, on disparity between the bids and expectations from Indian mills. An Indian mill had floated two ocean sale exp...
The Indian billets exports market turned silent this week, on disparity between the bids and expectations from Indian mills.
An Indian mill had floated two ocean sale export tenders due on 26 Nov'21 for end-December shipments. However, it seems that the mill cancelled the tender owing to limited participation.
"Currently, Indian mills are not very active but they are still expecting around $595-600/t FOB," highlighted a trade source. Bids from key importing nations have come down, he added.
- China has continued to remain less active with almost no firm bids for imported billets this week. However, price indications stand at $595-600/t CFR.
- SteelMint's bi-weekly assessment of imported billets (3 SP) into the Philippines stood at $640/tonne (t), CFR Manila.
- Bids for imported billets in Egypt have come down to around $670/t CFR against $695-700/t last week. The reason most probably is weakening scrap offers and the sudden emergence of a new coronavirus variant is leading to fall in bids.
Rebar futures up, domestic billet prices yet to improve: According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery settled at RMB 4,232/t ($676/t) on 1 Dec'21, up by RMB 91/t d-o-d. Steel billets prices in China's Tangshan decreased by RMB 10/t ($1/t) w-o-w to RMB 4,290/t ($664/t) on 1 Dec'21, (including 13% VAT).
Domestic billet prices fall: SteelMint's daily steel billet (IF route) index was assessed at INR 41,400/t exw-Raipur on 30 Nov'21, increasing by INR 500/t w-o-w since deals are still sluggish with the price reductions in pellets and iron ore lumps yesterday in central India. This resulted in reduction in domestic prices today by around INR 400/t.
Outlook
India's billet exports market is expected to remain sluggish as domestic prices may also fall further. At the same time, there is uncertainty in the global market.