This week, the Indian billet export market remained silent. The fluctuating Chinese rebar futures backed by falling global scrap prices has created the disparity between the bids and offers, resulting in a trade silence week. The upcoming Chinese holidays, starting from 1-8 Oct’20, has also supported the event. However, primary private mills have not seen offering for this week as well.
Chinese bids for Indian billets witness marginal fall- On the falling domestic billet market, the Chinese bids for Indian billets were reported at $415-420/t, CFR, down by $5 against last week. The domestic billet prices in China were reported at RMB 3,300/t ($485/t) in Tangshan, inclusive of 13 % VAT, down by RMB 20 against last week.
On the other hand, the SE Asian bids destination has seen at $425-430/t, CFR. While indicative offers from India heard at $430/t, FoB
However, a state-owned mill canceled 20,000 t billet export tender amid higher bid-offer spread. According to SteelMint sources, tender fetched the highest bid at around $430/t FoB for 65mm and $427/t FoB for 90mm sized billets.
SteelMint assessment for Indian billet export offers (150*150mm) is at $430/t, FoB India, unchanged against last week.
Recent deals-
An Indian secondary mill has booked 6,000 t billets for Mauritius (2,000 t) and Indonesia (4,000 t). According to SteelMint sources, the company managed to achieve the price levels of $463/t, CFR for Mauritius, and $432/t, FoB for Indonesia. Also, few deals for South Africa were under negotiations, but could not be updated until the time of publishing.
Upcoming Indian billet export tenders – Although towards mid of the last week, the company had floated two export tenders for 60,000 t blooms (30,000 t each) for mid-Nov’20 shipments. Among the two, one if floated against 100% advance payment terms for 3SP/4SP grade, while the payment terms for the other are payable at sight LC for 5SP grade. The due date for both the tender is 1 Oct’20.
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