Indian billet export prices remained stable in a recent deal for the second consecutive week, despite volatile dynamics. An Indian state-owned mill sold 30,000 t billets through an export tender issued for spot sale against 100% advance payment terms. According to SteelMint sources, the mill achieved a price level of around $594/t, FoB. The shipment is likely to be scheduled for China by end-May ’21.
However, other mills broadly remained silent, with no substantial offerings heard. During conversations with a leading steel mill, we learned that the second COVID wave adversely impacted their operations and they are currently busy finetuning their strategy.
The bid-offer disparity was also witnessed, as Chinese buyers dropped the bids to $615-620/t, CFR levels. According to our sources, this is due to the build-up in steel inventories for early May ’21 which subsequently pulled down the domestic billet prices. However, domestic prices have rebounded now.
Of late there has been a drop in freights but due to congestion developing in South China seaports for May/early Jun ’21 shipments, all post-May ’21 shipments are for North China ports. This will result in an extra freight of up to $5/t- SteelMint learned from international traders.
SteelMint’s bi-weekly assessment for India billets (150*150mm, BF route, FoB East coast) is $590-595/t, unchanged against last week.
Chinese domestic billet prices rebound after witnessing a drop of RMB 150 ($23): The domestic billet prices in China witnessed a rebound of around RMB 150 ($23). The drop was driven by SHFE rebar futures, which showed a downward trend for a couple of days. Today, the price in the Tangshan market (North China province) is at RMB 4,940/t ($756/t), exw, including 13% VAT.
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