The Indian billets exports market continued to remain quiet amid the ongoing China Golden Week holidays. Market participants are waiting for Chinese buyers to return to get a clear market direction. Recently-held billet tenders were heard to have fetched subdued participation and hence were cancelled.
A company had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) which is due this week. SteelMint’s assessment for 150mm BF-route billet export stands unchanged at $625/t FOB.
According to data maintained with SteelMint, the Chinese rebar futures contract for Jan’22 delivery closed at RMB 5,706/t ($883/t) on 30 Sept’21, a w-o-w increase of RMB 101/t ($16/t). Steel billet prices in China’s key steelmaking province, Tangshan, stood at RMB 5,210/t ($806/t), inclusive of 13% VAT, on 30 Sept’21.
Indian domestic steel prices up on coal price rally
Blast furnace-route rebar prices surged to INR 4,500/t for Oct’21 deliveries with primary mills announcing a hike in prices. The major factor behind the hike was higher coal and coke prices which narrowed the gap between IF and BF rebar prices. Current rebar (Fe 500 D, Fe 550D,12-32 mm) offers are at INR 56,000-56,500/t exy-Mumbai, excluding GST.
Domestic semi-finished and finished steel prices in India have increased which may not result in lowering of export offers from mills. SteelMint’s daily steel billet (IF-route) index is assessed at INR 47,400/t ($633) exw-Raipur on 5 Oct’21.
Outlook:
It is expected that billet export prices may remain supported post the Chinese holidays. However, power cuts in China even prior to the holidays have emerged as a major concern for steel mills there. Jiangsu is the second-largest province in China, contributing over 10% of China’s total crude steel production.
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