Indian billet export prices remained unchanged for the second consecutive week. In a recent deal export deal, a state-owned Indian mill has booked 16,200 t (125*125mm, 4SP/5SP) billets through a tender. According to the company’s official report, the tender concluded at a price level of $430/t, FoB India. The shipment is likely to be scheduled by the end-Nov’20 from the Haldia port (east coast of India).
The Indian private primary mills choose to stay out of the global billet market for this week, with a focus on the domestic market. On the other hand, a state-owned primary mill along with few secondary mills booked over 15,000 t billets for Nepal. The state-owned mill booked four billet rakes (~11,000 t) at price levels of $430-435/t, exw ($450/t, CPT Nepal), while secondary mills have booked approximately 5,000 t billets (via road delivery) at an average price of $396-398/t, exw ($420-425/t, CPT Nepal). The current offers from the state-owned primary mill for Nepal are at $440/t, ex-works.
Bids from China slow down as steel futures plunge- Amid continuously declining Chinese rebar futures, there was no buying interest for imported billets from China for this week. During 15-22 Sep’20, the rebar futures Jan’21 contract witnessed a drop of RMB 55 ($8), from RMB 3,592/t to RMB 3,537/t. Also, the domestic billet prices in China are trending downwards. In the past seven days, the prices have dipped by RMB 100, and are currently at RMB 3,320/t, ex-Tangshan, including 13% VAT.
SteelMint assessment for Indian billet export offers (150*150mm) is at $430/t, FoB India, unchanged against last week.
Indian bulk billet/bloom export shipments to are likely to remain unchanged in Sep’20- According to vessel line up data maintained with SteelMint maintained, the Indian bulk billet/bloom export shipments are estimated to be between 0.65-0.7 mnt in Sep’20 compared to 0.6 mnt in Aug’20. Indian mills have lowered export allocations due to increased domestic realization.
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