Indian Billet export prices move up sharply with recent Vizag Steel tender which expired on 18th July 2017. According to market participants, company received overwhelming response and fetched bids at around USD 425-430/MT FoB India. These bids are higher by USD 10/MT from SteelMint’s last week assessment of USD 415-420/MT FoB India.
Vizag steel had floated an export tender of 25,000 MT bloom of size 150*150mm for end Aug delivery. Vizag steel last concluded its bloom export tender in the month of March at a price level of USD 390-405/MT FOB India.
In previous article, SteelMint reported that global billet prices are rising on strong demand, short supply of billets and rising electrode prices globally.
“We are not surprised with these numbers as global prices are moving up on absence of Chinese billet. At the same time Russian and Ukrainian suppliers are booked till next month.” said an exporter based in Mumbai.
What is driving billet prices in global market ?
Billet prices in global market are rising on account of falling exports from China. In a move to curb pollution, Chinese government ordered to shut down small induction furnaces which use to produce about 40-50 million tonnes per annum, according to participants.
This has created a shortage of billet and re-bar in domestic market, which has led support to prices as well.
At the same time several EAF (Electric Arc Furnaces) are starting their operations in China in order to compensate gap created by closure of induction furnaces. This has led to sharp increase in prices of graphite electrodes, which is used by EAF.
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