India: Billet export market remains quiet in absence of firm bids

Indian blast furnace (BF)-grade billet export prices remained stable with hardly any firm offers from India and sluggish demand from key importing nations.

As per market sources, Indian mills are still looking for price levels of around $610-630/t FOB. No deal was heard in this week so far.

Markets overview

• SE Asian imported billets offers firm: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $645/t, CFR Manila, but no firm buying was seen, as per market participants.
• Billet export offers from Russia further down: Competitive billet offers (150mm) from CIS are heard to be at around $585/t FOB levels this week, down by around $5/t w-o-w.
• Chinese SHFE rebar futures slump: Chinese SHFE rebar futures fell sharply this week. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery was closed at RMB 4,547/t ($677/t) on 15 June 2022, a sharp fall of RMB 248/t ($37/t) w-o-w. Also, on a d-o-d basis, prices decreased by RMB 70/t ($10/t).

Meanwhile, steel billet prices in China’s Tangshan remained stable at RMB 4,380/t ($653/t) on 15 June 2022, inclusive of 13% VAT. However, prices fell by RMB 140/t ($21/t) w-o-w.

• Global scrap prices drop by $40 w-o-w: Turkey’s imported ferrous scrap prices fell further by $5-10/t after the recent deals heard, as per sources. A Europe-origin bulk mixed cargo, comprising HMS 1&2 (80:20) and shredded, was heard booked at $370/t and $380/t CFR respectively. However, the deal remained unconfirmed till the time of publishing this report. SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $385/t CFR levels, lower by $40/t w-o-w.

Outlook

Indian billet export prices are expected to remain sluggish amidst lower bids and falling global prices. Also, with monsoons approaching in India, longs steel demand may remain further subdued.