SteelMint: Indian mills’ billets export offers rise post-holidays

Indian mills have raised billet export offers post-Chinese New Year holidays. The price rally in the domestic market, surge in billet export offers from CIS and the hike in Chinese domestic billet prices, have lifted the price idea from Indian mills too.

SteelMint’s bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at $658/t FOB on 8 Feb’22, up around $13/t w-o-w. Indian billets export price indications are still at an eight-and-a half-month high.

One of the steel mills had floated an export tender for 18,900 t of billets (150mm, 4/5SP)  for which bids were due on 7 Feb’22. The shipment is scheduled towards mid-April. As per sources, the expectation was around $660-670/t FOB. However, bids were lower by $10-15/t than expectations and the tender is still under negotiations.

Few other tenders in the pipeline

• Leading State-owned steel producer Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) on FOB ST. delivery basis. The due date for the tender is 10 Feb’22.
• In another tender, State-owned Vizag Steel has floated two ocean sale export tenders for 20,000 t each of billets (90x90mm, C20MMn Gr. A) and wire rods (5.5-16 mm, SAE-1008/ 1010/1012/1012S /1018). The due date for both the tenders is 11 Feb’22 and the delivery is scheduled for April.

Indian mills are still eyeing higher prices and are reluctant to conclude deals at lower offers. Domestic billets prices are still high following the hike in coal and other raw material prices.

• Chinese steel futures up sharply post-holidays:  According to data maintained with SteelMint, China’s SHFE rebar futures contract for May’22 delivery closed at RMB 4,843/t ($761/t) on 9 Feb’22, witnessing a sharp rise of RMB 149/t ($23/t) against the pre-closed prices on 26 Jan’22. However, it witnessed a fall of RMB 69/t ($11/t), d-o-d.
  

Following a fall China’s rebar futures, steel billet prices in China’s Tangshan remained stable at RMB 4,670/t ($734/t) on 9 Feb’22, inclusive of 13% VAT. However, the same witnessed a sharp hike of RMB 190/t ($30/t), w-o-w.

SteelMint’s assessment of imported billets (150*150mm, 3SP) into China opened post-holidays at around $685-695/t, CFR China, up sharply around $45/t, w-o-w.

• Hike in SE Asia import billets prices: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $685/t, CFR Manila, up around $15/t, w-o-w. As per sources, one of the deals was also heard from a CIS nation at around 25,000-30,000 t at $710/t CFR to Southeast Asia. However, it could not be confirmed till the time of publishing the report.

Outlook

India’s billet export prices are expected to remain high on the back of the uptick in global prices. However, bid-offer disparity may keep trade on the lower side, unless buyers raise their bids.