Indian mills raise billets exports offers on higher domestic prices

Indian billet export trade slowed down slightly this week after witnessing active deals of around 90,000 tonnes (t) in the past week. SteelMint's bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at $603/tonne (t) FOB on 18 Jan'22, this week, keeping range-bound w-o-w.

Indian mills have been eyeing higher prices in exports in the recent round of tenders following sharp increase in domestic prices. However, bids are still not very encouraging.

An Indian mill had floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The shipment is scheduled within 45 days from the export agreement. As per sources, the mill is expecting around $605-610/t FOB.

Another private mill was learned to have to looked for $610-620/t FOB for 3 SP billets.

Rebar futures trigger recovery in global markets: According to data maintained with SteelMint, China's SHFE rebar futures contract for May'22 delivery closed at RMB 4,713/t ($742/t) on 19 Jan'22, witnessing a sharp rise of RMB 114/t ($18/t), d-o-d. On a weekly basis, the same rose by RMB 81/t ($13/t).

Following a recovery in futures, steel billet prices in China's Tangshan rose to RMB 4,410/t ($695/t) on 19 Jan'22, inclusive of 13% VAT, an increase of RMB 10/t ($1/t) w-o-w and of RMB 50/t ($8/t) d-o-d.

Billet import prices remain supported: SteelMint's bi-weekly assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $630/tonne (t), CFR Manila, stable, w-o-w. Offers from Indonesia were also at around $635/t CFR China for Mar'22 shipments.

Outlook

Indian primary mills have raised rebar offers by INR 500-2,000/t for mid-Jan'22 following hike in coal prices and improved demand from the construction sector. Following the rise in domestic prices, mills have raised offers for billet exports too. However, export bookings are likely to slow down ahead of the upcoming Chinese New Year holidays.