Three billet export tenders by Indian state-owned mills, which expired this week, managed to fetch bids in the range of $540-550/t FOB, east coast India, SteelMint learned from market sources.
Out of three, one lot of 30,000 t (150mm, 3/4sp) reported having been closed at $540-545/t FOB levels for Apr ‘21 Shipment. The second tender is under negotiation and the third has been canceled. These tenders reported having received bids in the range of $540-550/t FOB levels, India east coast for Apr ‘21 shipment.
Despite the volatile global market, Indian mills have remained active in the global billet market. However, recent fall in Chinese steel futures market and rising vessel freight rates were a setback and has prevented Indian mills from fetching bids in line with their expectations.
SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is $545-550/t, up by $5.
Chinese steel futures fall: On the global front, the Chinese rebar futures slipped significantly yesterday, by RMB 160 ($23) which in turn affected the domestic billet prices in China. SHFE rebar May’21 contract closed at RMB 4,592 ($705), falling by RMB 160 ($25) d-o-d.
Chinese domestic billet prices fall: Yesterday, the billet prices in the Tangshan market (North-East China) witnessed a decrease of RMB 60 ($9) and are currently at RMB 4,350/t ($666/t) in Tangshan, including 13 % VAT.
Global scrap prices decline in recent trades: Imported scrap prices in Turkey have decreased by $5/t in recently concluded deals, credible sources confirmed to SteelMint. A Mediterranean region-based steel mill has booked USA origin bulk cargo.
The cargo comprised HMS (80:20) at $453/t and P&S stands at $463/t CFR Turkey basis. SteelMint’s Turkey imported scrap assessment now stands at $456/t CFR level.
Owing to the above-mentioned reasons, the Chinese buyers have dropped bids for Non-ASEAN billets to $550-560/t, CFR from $ 580/t, CFR levels.
Meanwhile, we also witnessed RMB depreciating against $, which strongly supported pulling down the Chinese bids. RMB is trading at 6.51 against $ which was at 6.46 a week back.
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