Indian billet exporters are eyeing higher export prices owing to limited supply in seaborne market. Current price expectation for 150*150mm 5SP billet from India is around USD 430-435/MT FOB India main port, according to participants.
Last week, Indian manufacturers were confident of selling their billets at around USD 420/MT FOB India.
“We will not be surprised if Indian manufacturers managed to get bids at USD 430-435/MT FOB India. There is severe shortage of billets in the global market, specially since China is out and Russian and Ukrainian suppliers are booked till next month.
There are no fresh offers for bulk shipments from private manufacturers, except the Vizag steel’s (govt owned manufacturer) billet and bloom export tender of 35,000-40,000 MT. ” said an exporter based in Mumbai.
Last bulk billet deal done by Indian private manufacturer was reported at around USD 410-415/MT FOB, some time in early July.
Indian Billet exports jumped two fold in FY17 – The total export of semi finished goods under chapter 7207 was 1.94 MnT as compared 0.97 MnT in FY 16. JSW Steel, Vizag Steel, SAIL and JSPL remained key exporters from India.
SE Asian Market
SE Asian market remains a preferred destination for billet exports, specially Indonesia, Philippines, Thailand. Current price level are assessed at around USD 445-455/MT CFR SE Asia.
Falling steel exports from China has led to increased rolling activities in these countries. Notably Chinese government has closed several small induction furnaces in the country which were operated illegally. According to industry estimates output from these furnaces was about 40 MnT.
This move from government has led to shortage of billet, wire rods and re-bars in domestic Chinese market.
Middle East Market
Iran based exporters have managed to increase their offers on strong demand. Last export tender by KSC was heard settled at around USD 415/MT FOB Iran.
A participant from Egypt confirmed buying interest for 130*130mm billets at around USD 450-455/MT CFR Egypt. Freight from CIS (Russia/Ukraine) expected to be around USD 15/MT.
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