India's ocean billets export trade muted amidst bid-offer disparities

Indian billets export market remained subdued in the last one week amidst bid-offer disparities as no significant deals were reported. SteelMint's bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at around $750-770/tonne (t) FOB on 29 Mar'22, down marginally by $5/t, w-o-w.

Factors weighing down Indian billets export trade -

• Indian mills less aggressive in exports: Indian mills remained less active in offering the material in the exports market. Owing to production-related issues at a couple of key primary mills, export allocations remained low. Also, as per media reports, thousands of workers from state-owned SAIL, RINL and NMDC joined the two-day nationwide strike on 28-29 Mar'22 , which also impacted production volumes.
  
  
• Fiscal year-end: With the fiscal year FY'22 coming to a close, Indian mills are busy in settling their accounts and hence, are less active in concluding fresh export deals.
  
  
• Chinese mills active in billets exports: Chinese mills are reportedly active in steel billets exports at comparatively low offers to SE Asia and East Asian countries which is affecting Indian billets export market. Chinese BF-route billets are being offered at around $800/t FOB, as per market sources. However, no significant deals have been reported recently.
  
  

Market highlights-

• Chinese SHFE rebar futures rise: According to data maintained with SteelMint, China's SHFE rebar futures contract for Oct'22 delivery closed at RMB 5,034/t ($792/t) on 30 Mar'22, a w-o-w rise of RMB 51/t ($8/t). On d-o-d basis, an increase of RMB 22/t ($3/t) was noticed. Meanwhile, steel billets prices in China's Tangshan remained stable at RMB 4,830/t ($760/t) on 30 Mar'22, inclusive of 13% VAT. However, prices rose by RMB 80/t ($12/t), w-o-w.
  
  

• SE Asia imported billets offers supported: SteelMint's assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $810-820/t, CFR Manila.
  
  
• Hike in Indian domestic steel prices: Indian mills raised long steel prices significantly on rising raw material prices. SteelMint's BF-route rebar price assessment was recorded at INR 72,500/t exy-Mumbai, up sharply by INR 500/t, w-o-w. Thus, higher domestic finished longs prices have kept mills' price expectations on the higher side even for billets export bookings.