Indian blast furnace (BF)-grade billet export market remained inactive this week amid low demand and firm offers. The gap in bids and offers widened owing to increased prices in the domestic market.
As per sources, steel mills in India are not ready to sell at lower rates as they are experiencing costs pressures. No billet export tender was heard of so far this week. On the other hand, the domestic market has improved since the last couple of days.
Markets overview
- SE Asian imported billets offers stable: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $580/t, CFR Manila, stable w-o-w due to low market demand.
- Billet export prices from Russia decline: Competitive billet (150mm) price indications from the CIS are heard at around $510/t FOB this week, down $5/t w-o-w. However, the sharp rebound in Turkey’s imported scrap prices are likely to push up billet offers.
- Chinese imported billet prices fall: SteelMint’s assessment of imported billets (150*150mm, 3SP) into China stood at around $500/t CFR, down by around $30/t w-o-w.
- Chinese domestic billet prices drop over fall in SHFE rebar futures: Chinese Shanghai Futures Exchange (SHFE) rebar futures witnessed a sharp fall this week. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 4,209/t ($628/t) on 7 July, a fall of RMB 169/t ($25/t) w-o-w.
Meanwhile, steel billet prices in China’s Tangshan declined w-o-w by RMB 120/t ($18/t) to RMB 3,920/t ($585/t) on 7 July 2022, inclusive of 13% VAT. Steel production curbs, weak domestic demand, fall in rebar futures and subdued finished steel market amid bad weather due to a cyclone in the region have weighed on prices.
Outlook
The Indian billets exports market is expected to remain sluggish in the days to come. However, global ferrous scrap prices have started witnessing some recovery which may lend support to global billet prices.
Leave a Reply