The Indian billet exports market remained dull on volatile rebar futures on the Shanghai Futures Exchange (SHFE), strongly supported by new guidelines issued by Chinese port authorities for Indian cargoes. According to SteelMint’s sources, “Chinese buyers are less interested in Indian cargoes as they are asking for mandatory 28 days’ waiting period before berthing at Chinese ports.”
The most-active rebar futures contracts for Oct ’21 delivery on SHFE are reportedly settled at RMB 5,002/tonne (t), up by RMB 389/t week-on-week (w-o-w). However, on a day-on-day (d-o-d) basis, these fell by RMB 126/t.
This week, buying indications for Chinese billets opened at $640-650/t, CFR. As the futures trended up, the bids rose to $670-680/t, CFR. However, SteelMint has not heard of any deals concluded at these elevated levels.
On the other hand, domestic billet prices in China saw a w-o-w rise of RMB 60/t to settle at RMB 5,000/t, ex –Tangshan, including 13% VAT ($670-680/t CFR), on 2 June’21. According to SteelMint’s analysis, the import bookings are likely to be concluded at $660-665/t CFR.
Meanwhile, a few western India-based secondary mills have sold a billet cargo to a trader at around $600/t FoB India. According to sources, “As of now, Indian billet export prices are likely to settle at $600-605/t, FoB India levels.”
Another source quoted a price indication of around $605-610/t, FoB India for blast furnace-route billets.
SteelMint’s bi-weekly price assessment of Indian billets (150*150mm, BF route, FoB east coast) stands at $605/t, FoB as on 2 June’21.
In-progress Indian billet/bloom export tenders:
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