India’s billet exports market has turned silent on lowered Chinese buying indications close on the heels of the continuously down-trending Chinese rebar futures. According to the data maintained with SteelMint, the Shanghai Futures Exchange (SHFE) rebar future October contracts dropped by RMB 642/tonne (t) ($100/t) week-on-week (w-o-w), to reach RMB 4,667/t ($730/t) on 26 May ’21.
On the other hand, domestic billet prices saw a w-o-w fall of RMB 530/t ($83/t) to settle at RMB 4,940/t ($773/t) on 26 May ’21, consequently dragging down the Chinese bids for imported billets to $660-670/t CFR levels from $680-690/t CFR seen in the previous week.
These dynamics have impacted the Indian billet exports market. SteelMint witnessed the bid-offer disparity and limited buying interest for Indian cargoes on account of the volatile dynamics. For instance, two billet export tenders of a state-owned mill remained unsold. On the other hand, we didn’t hear substantial export offerings from private mills. Chinese buyers are worried about the quarantine impact on shipments from India and waiting delays, traders highlighted.
SteelMint’s bi-weekly assessment for Indian mills’ billets (150*150mm, BF route, FoB east coast), published on 25 May ’21, was at $615-620/t, down $40 w-o-w.
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