Indian BF-grade billets export prices remained stable but no deals were concluded recently amid weak buying interest and sluggish global demand. The bid-offer disparity continued to keep buyers at bay.
As per market sources, Indian mills are still looking for the price levels of around $615/t FOB. However, bids were heard below $600/t FOB.
Last week, western India-based steelmakers had concluded around 5,000 t of induction furnace (IF)-route billets for Africa. According to market sources, the deal was concluded at around $610-620/t on FOB basis.
Factors weighing on Indian billet exports-
- SE Asian imported billets offers inch down: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $646/t, CFR Manila, a further drop of $2/t on weak demand.
- Competitive export offers from Russia: Competitive billet offers (150mm) from CIS are heard to be at around $590/t FOB levels this week, down by around $25/t w-o-w.
- Chinese SHFE rebar futures largely stable: Chinese SHFE rebar futures remained largely stable this week. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery was closed at RMB 4,791/t ($718/t) on 9 June 2022, a marginal increase of RMB 3/t ($0.45/t). However, on a d-o-d basis, prices inched down by RMB 4/t ($1/t).
Meanwhile, steel billet prices in China’s Tangshan remained stable at RMB 4,520/t ($678/t) on 9 June 2022, inclusive of 13% VAT. However, prices rose by RMB 20/t ($3/t), w-o-w.
Outlook
Indian billet export market is expected to remain sluggish in the days to come. BF-grade steel mills are concerned about lowering their export prices owing to high costs. Though new bookings of coal may bring down production costs to some extent but that may take some time.
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