Steel Authority of India – a government of India company had floated two export tenders for 13,500 MT billet each from Haldia and Vizag port.
The tender put up for Prime Mild Steel Non-Alloy Concast billets (125*125mm) had following specifications – C-0.27-0.32%, Mn-0.7-0.9%, S-0.05% max, P-0.05% max and Si – 0.15-0.35%. The length of the billets was 9-12 metres.
The material shipping was scheduled on 28 Feb’18. The due date for bid submission was 16:00 hrs on 20 Dec’17.
According to market sources report to SteelMint, despite receiving high bids the steel maker has cancelled the tender owing to issues in material availability. As per sources the steel maker may come up with the next export tender in next month.
Domestic billet prices in India have increased by INR 1,000-1,500/MT W-o-W amid hike in raw material prices and increased prices of finished steel. Currently trade prices are around INR 35,500/MT (Ex-Mumbai) for 125*125mm billets. Amid high realizations in domestic market, Indian exporters may resist booking for export at less than USD 540/MT, FoB India levels.
Global Billet Market Overview:
1. CIS origin billet export offers are hovering around USD 515/MT, FoB Black Sea. Offers have remained stable amid holidays.
2. Iran’s KSC concluded 35,000 MT billet export tender at around USD 520/MT, FoB Iran last week. The material shipment is scheduled towards end of March.
3. SE Asia billet import prices are assessed around USD 530-540/MT, CFR.
4. Chinese billet export price assessment stands at USD 540/MT, FoB
5. Domestic billet prices in China have come down today by RMB 50/MT D-o-D and are currently assessed at RMB 3,680/MT (including 17% VAT) for Q235 grade billet Tangshan, China.
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