Indian mills continue to lift billets export offers amidst trade tensions

Indian billets export offers witnessed a further sharp rise this week amidst lack of offers from the CIS nations due to the ongoing crisis, higher domestic offers and hike in raw material prices.

SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $740-760/tonne (t) FOB on 8 Mar'22, up sharply by $50/t, w-o-w.

There will be further clarity on Indian billet export prices once the outcome of recent tenders floated are unveiled as freight rates are very volatile and have risen sharply on the back of the ongoing trade tensions. However, a few mills' price expectations were heard at $750-770/t, FOB levels.

Tenders in progress:

• Vizag Steel had floated an export tender for spot sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP). The tender was floated against 100% advance payment terms with the due date being 8 Mar'22. The shipment is scheduled within 45 days from the export agreement.
  
  
• SAIL had floated a billet export tender for 18,900 t which was due on 8 Mar'22.
  
  

What factors support high Indian billets export prices?

• Chinese SHFE rebar futures rise, import market silent: According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,907/t ($777/t) on 9 Mar'22, witnessing a w-o-w rise of RMB 47/t ($7/t).
  
  

SteelMint's assessment of imported billets (150*150mm, 3SP) into China are at around $685-695/t, CFR, up by around $10/t, w-o-w.

Meanwhile, steel billet prices in China's Tangshan fell d-o-d by RMB 30/t ($5/t) to stand at RMB 4,760/t ($753/t) including VAT on 9 Mar'22, inclusive of 13% VAT. However, the same rose sharply by RMB 130/t ($20/t), w-o-w.

• SE Asia imported billets offers increase: SteelMint's assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $760-770/t, CFR Manila, up by around $28/t, w-o-w.
  
  
• Hike in billet export offers from other regions: An Iranian mill has concluded an export deal for 30,000 t of steel billets, sources informed. The deal was concluded at around $679-681/t FOB for end-April shipment. Iran's billet export prices have risen marginally by around $65-70/t w-o-w.