Indian mills turn active in the global billet market as we approach the end of the Chinese New-Year holidays (CNY). Sluggish domestic demand has swung the interest of the majority of the Indian mills towards the export market. The domestic demand went sluggish amid high prices, supported by the government’s nudge to have a check on rising steel prices, ticking off producers that prices need to be decreased. On the other hand, the primary players have reached almost 100% optimal capacity utilization level and hence are now looking for better and desirable realizations in the global market.
In a recently hosted billet tender, a state-owned mill of the country managed to achieve a price level of $510-512/t, FoB. The tender floated was for 60,000 t billets (150x150mm, 3SP/4SP) for the end-Mar ’21 shipment. According to SteelMint’s credible sources, the mill booked 30,000 t billets. However, today the mill has invited bids for the export of 30,000 t billets (150*150mm, 3SP/4SP). It is a spot sale tender against 100% advance payment terms.
Another state-owned mill booked 18,900 t billets at the end of the last week at around $520/t, FoB India. The shipment is likely to be scheduled for a SE Asian destination from Haldia port.
Indian billet deals table
On the other hand, the IF route billet offers have also registered a rise amid increased global scrap prices. Imported scrap prices to Turkey registered a sharp hike last week. Buyers were actively booking fresh slots for Mar’21 shipments on increased domestic finished steel demand. Suppliers are even targeting the $415-420/t CFR level, as market insiders consider that there is room for more bookings for March shipments. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $410/t CFR Turkey towards the closing of last week, up by $20/t w-o-w.
The billet offers (IF route) from Chennai (the Southern India coast) for small parcel size (<10,000 t) were heard at $530-535/t, FoB.
SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is currently at $ 510-515/t, unchanged against last week.
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