The Indian billets export market turned silent this week. No seaborne BF-route billets export deal was heard to be concluded so far this week. SteelMint’s bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at $600/tonne (t) FOB on 21 Dec’21.
Vizag Steel opened a tender today for 20,000 t of steel billets (90x90mm, 5SP grade) with due date of 28 Dec’21. The shipment is scheduled for the end of Jan’22.
Another PSU was heard to be in no hurry for its next tender as it is waiting for the billet/bloom export market to improve. Also, they have fewer allocations for exports.
Indian private mills continue to eye for higher price levels of around $620/t FoB for billet exports, sources said.
Chinese bids for imported billets drop tracking decline in rebar futures
Bids for imported billets in China fell again this week after showing some promising recovery last week. SteelMint assessed China’s steel billets import prices at $605/t CFR on 21 Dec’21, down by around $5/t, w-o-w.
According to data maintained with SteelMint, China’s SHFE rebar futures contract for May’22 delivery closed at RMB 4,479/t ($703/t) on 23 Dec’21, witnessing a rise of RMB 41/t ($6/t), d-o-d. However, on a weekly basis, it fell by RMB 50/t ($8/t).
However, domestic billet prices in China’s Tangshan rose by RMB 30/t ($5/t) w-o-w to RMB 4,390/t ($689/t), including 13% VAT on 23 Dec’21 on the back of production cuts.
Prices fall w-o-w in SE Asian markets
Bids for imported billets in South East Asia remained subdued and were heard at around $630-635/t, CFR Manila, lower by $5-7/t w-o-w. In a recent deal, a parcel of 20,000 t of steel billets was exported by Indonesia’s Dexin Steel at around $635/t on CFR basis, sources informed SteelMint.
Bids from Egypt fall
Egypt’s Ministry recently revoked the 25% and 16% safeguard duties on imports of rebar and billets respectively, following which Indian mills started exploring this new market. Bids for imported billets in Egypt are heard to be hovering at around $625/t CFR currently as against $670/t CFR at the beginning of this month. The increasing threat of Omicron and weakening scrap offers weighed down bids.
Outlook
Owing to a better domestic market, Indian steel mills are reluctant to lower export offers. Therefore, the billets export market in the upcoming days may remain weak ahead of the Chinese winters and Christmas holidays.
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