Steel exports from India is picking up, thanks to rising domestic production and absence of Chinese cargoes. Recently, Steel Authority of India (SAIL),has concluded around 5,000 MT wire rod export deal.
SAIL is India’s second largest steelmaker in terms of production and has two wire rod production units in India i.e. Bhilai Steel Plant (BSP) in Central region and IISCO, Burnpur in East part.
The company has received quite a good response for its Wire Rod Open Export Tender of Grade IS 2062. According to market participants the deal has been concluded at around USD 500-505/MT CFR SE Asia, which is equivalent to USD 470-480/MT, FoB India (East coast, Haldia Port).
India is being looked as the preferred supplier by the South East Asian buyers due to the higher export offers from China and CIS regions
Following the suit the other large steel makers are also eyeing export market owing to better realization. Recently, RINL floated a export tender for 11,008 MT wire rod for Nepal, which will expire on 28 July, 2017.
Chinese Export Offers: Chinese export and domestic offers have increased significantly over past few weeks due to government’s measure to eliminate small induction furnaces. These furnaces used to produce billets, re-bars and wire rods. According to participants, Chinese wire rod offers are hovering at around USD 490-500/MT FoB China, which are more than three year high levels.
Rise in export offers was supported by the domestic market where offers rose progressively owing to strong demand and shortage of the material in Chinese domestic market.
CIS Exports: CIS exports have been actively exporting wire rod due to higher export offers from China. In the last week, CIS export offers have increased to about USD 485-500/MT FOB Black Sea.
South East Asian Imports: South East Asian imports have seen stability over the past week and have been actively trading around USD 500-505/MT.
Indian Steel Exports Increase: Indian steel exports rose by 60% during Q2 of 2017 vs Q2 of 2016.According to Indian steel ministry, steel exports from India are recorded at 1.78 MnT during Apr-Jun 2017 against 1.11 MnT during same period in last year.
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