Indian billet export market remained broadly silent this week amid bid-offer disparity. The hike in freight rates is becoming a matter of concern. Buyers are anticipating that mills will lower down their offerings. SteelMint learns that vessel freight for Chinese and SE Asian destinations is ranging between $45-50/t.
Owing to this, a state-owned mill canceled its billet export tender floated for spot sale. Its base price was set at $545/t, FoB India. The mill is into the retendering process and has floated the tender for 60,000 t blooms (150x150mm. 3SP/4SP). The payment terms are 100% advance with a likely shipment schedule of end-Apr ’21. The due date is 22 Mar ’21.
Chinese domestic prices have hit over a nine-year high on production curbs, creating room for billet imports. Yesterday the billet prices in the Tangshan market (Northeast China) witnessed a further increase of RMB 50 ($8).
Currently, the prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,450/t ($685/t) in Tangshan, including 13 % VAT. Billet transactions were moderate today, and the finished steel prices have softened.
Rising freight charges coupled with sluggish finished steel demand are limiting the buying.
Chinese bids for Indian billets are heard at $590/t, CFR. While Thailand is not reacting even at $570 -575/t, CFR, SteelMint learned from trading houses.
SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB East coast) is at $545-550/t, unchanged w-o-w.
Indian mills remain active in concluding export deals for Nepal: An Eastern India-based primary mill has concluded 2-3 rakes (about 6,000-8,000 t) of billet export deals to Nepal at $540-545/t loaded to rake (equivalent to $560/t CPT Nepal), following which offers have been raised to $560/t loaded to rake.
The Nepal buyers are seen to be highly interested in booking primary mills’ blast furnace grade billet due to competitive offers over induction grade (secondary mills) billet, whose offers are hovering at $535/t exw Durgapur (equivalent to $560/t CPT Nepal).
Indian state-owned mills have floated tenders for around 100,000 t billets, Apr ’21 shipments.
Indian billet export tenders in progress:
Leave a Reply