India’s East Coast based billet makers are mostly dealing in export instead of supplying material in domestic market amid higher export realization compared to domestic prices.
Imported scrap offers have touched a 1-year high. HMS 80:20 scrap offers in Turkey are assessed at approx USD 260/MT. Currently, manufacturers have delayed scrap import due to cheaper billet, especially in Bangladesh and Nepal. Low import duty from India has also supported buying of Indian sponge and billet.
Shyam Sel, an integrated plant based in Durgapur, reported, “We have concluded few deals for billet at USD 345/MT (INR 22,800-23,000/MT) to nearby countries; there are few more queries at this offers.”
Currently, imported scrap offers to CNF Bangladesh are assessed at USD 270/MT; have increased by USD 50/MT (upto INR 3,500/MT) in a month. Whereas, billet offers are seen at USD 340-345/MT; up by USD 10-15/MT (INR 700-1,000/MT) in the same period.
Sources also reported that few sponge deals had also concluded to Bangladesh at around USD 210-220/MT (INR 13,500-13,800/MT) ex-works for 80 FeM (lumps) from East Coast (Odisha). However, offers for local buyers for the same grade material are around INR 11,500-12,000/MT ex-works.
Indian Billet/Blooms/Slab Export in FY16 (Apr’15-Mar’16)
| Receiver Country | Qty in MnT |
| Bangladesh | 0.42 |
| Nepal | 0.03 |
| Shrilanka | 0.06 |
| Italy | 0.04 |
| Mayanmar | 0.02 |
| Others | 0.05 |
| Total | 0.88 |
Consider HS Code: 72071190,72071920,72071990
Source: DGFT & Custom Data
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