Indian billet export prices have continued to exhibit a southward momentum following the drop in bids from China and South East Asia. SteelMint’s price assessment for Indian billet exports (150*150 mm, 3sp, BOF route) stands at $585/tonne (t) FOB, down by around $23/t w-o-w
However, billet prices have fallen to around four months lows as per data maintained with SteelMint.
An Indian mill is reported to have floated a tender for 30,000 t of square billets (150mm, 4SP) for export through tender for December delivery. It is learned the company managed to fetch bids in the range of $590-595/t FOB India, SteelMint learnt from market sources.
As per the sources, the bid put up was for the non-Chinese market most probably for Egypt or Turkey.
Egypt’s Ministry of Trade and Industry has recently revoked the import tariff duty on rebar and billets to nil from the existing rate of 25% and 16% simultaneously. The import tariff was imposed in Apr’19 and had been due to lapse in Apr’22.
Indian mills seem to be trying to explore new markets due to the falling bids and weak demand from China and South -east Asia.
Another Indian mill had floated an export tender for 18,900 t of prime mild steel non-alloy concast billets (150mm, 3/4SP) for shipment on 15 Jan’22. As per market sources, the mill has received firm bids at around $572-575/t FOB, but it seems the tender was cancelled on bid-offer disparities.
China’s imported billets bids subdued: Bids for imported billets in China are subdued on falling rebar futures. SteelMint’s assessed prices for China’s steel billet imports dropped to $615/t CFR on 16 Nov’21 against $625/t CFR last week. Lack of bids from China further led to the market downtrend this week.
According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery settled on 17 Nov’21 at RMB 4,216/t ($660/t), witnessing a fall of RMB 30/t ($5/t), w-o-w.
Chinese domestic billet prices trade lower: Chinese domestic billet prices continued to trade lower. Following the volatility in the futures and concerns over subdued demand, steel billet prices in China’s Tangshan fell to RMB 4,180/t ($654/t) on 17 Nov’21, (including 13% VAT), down by RMB 270/t ($42/t), w-o-w.
India’s billet prices hit two months lows: SteelMint’s daily steel billet index (IF route) was assessed at INR 41,600/tonne (t) (-INR 2,000) exw-Raipur on 16 Nov’21 against a week before. The index fell to around two-month low on account of low bids and poor buying interest for finished steel products. However, yesterday, buyers in the market resumed purchases after the prices touched such lows over the last few days.
Outlook
Indian mills may continue to explore non-Chinese markets as China has imposed another round of emergency restrictions on sintering and coking facilities starting the evening of 15 Nov’21 due to poor air quality forecast in the coming days. But the measures do not seem as stringent as in the previous round.
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