Indian billet export prices witnessed a marginal fall in a recent deal. This was the third consecutive week when billet prices were seen dipping. According to SteelMint sources, a state-owned mill booked a billet cargo at $515/t, FoB. The deal was done off-tender for around 16,200 t (150*150mm). After a long haul, the mill turned active in the export market amid sluggish domestic demand and dipping prices.
Another state-owned mill canceled an export tender, floated for 30,000 t billets (150*150mm, 3SP/4SP grade). Amid the Chinese New-Year holidays, the tender is heard to have received limited participation. However, today (10 Feb ’21) it issued an export tender for the spot sale. It is also floated for 30,000 t billets (150*150mm, 3SP/4SP grade).
Indian billet export tender update:
On the other hand, the other mills broadly remained silent and were seen in a wait-and-watch mode. However, during the end of the last week, a secondary mill was heard to have booked around 15,000 t billets for an African destination at $550/t, CFR.
SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $515/t, down $5-7 against last week.
Meanwhile China, during the end of the last week, a couple of billet cargoes were reported being booked from Russia and Indonesia. The Russian cargo was booked at around $525/t CFR China (125mm), whereas an Indonesian cargo (150mm) reported being booked at $540/t CFR levels (ASEAN countries enjoy an exemption of 2.5% in import duty due to preferential trade agreement with China).
China is likely to actively resume steel billet imports after the New Year holidays (11-18 Feb ’21), if global prices continue to remain at current levels. Also, the expected pick-up in seasonal demand and prices post-holidays may lead to increased imports, SteelMint learned from market participants. Most of the participants believe, Chinese domestic steel prices may pick up post-holidays opening up room for imports.
Outlook: During Q4 FY ’21, the Indian domestic finished steel market is likely to remain sluggish. Hence, we may witness a decent number of Indian cargoes, traded in the international market, especially in China post-holidays.
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