India: Billets export market turns dormant on rising longs prices in domestic market

The Indian blast furnace (BF)-grade billet export trade continued to remain inactive and kept buyers at bay. As prices of long steel (rebar and wire rods) in India’s domestic markets have increased substantially, sellers were reluctant to sell at lower bids. Thus, a couple of Indian players remained out of the billet exports market.

Steel mills in India are not ready to sell at lower rates as they are getting better realization in the domestic market itself, sources also informed. Indian primary mills have raised rebar offers by around INR 1,000/t for mid-July sales. Therefore, no billet export tender was heard so far this week too.

Factors influencing subdued billets exports market

• SE Asian imported billets offers down: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $575/t, CFR Manila, down around $3-4/t w-o-w due to low demand and the global meltdown.
• Billet export prices from Russia up: Competitive billet (150mm) price indications from the CIS were heard at around $545/t FOB this week, up $17-18/t w-o-w following the hike in global ferrous scrap prices which shot up after Turkey’s price uptrend.
• Chinese imported billet prices fall: SteelMint’s assessment of imported billets (150*150mm, 3SP) into China stood at around $500/t CFR, down by around $4/t w-o-w.
• Chinese domestic billet prices drop over fall in SHFE rebar futures: Chinese Shanghai Futures Exchange (SHFE) rebar futures witnessed a sharp fall this week. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 3,910/t ($581/t) on 13 July, a sharp fall of RMB 335/t ($50/t) w-o-w.
  

Meanwhile, steel billet prices in China’s Tangshan declined w-o-w by RMB 270/t ($40/t) to RMB 3,650/t ($543/t) on 13 July 2022, inclusive of 13% VAT. Prices have hit over one-and-a-half years low amid falling futures, weak demand and subdued finished steel sentiments, Steelmint data shows.

Outlook

The Indian billets exports market is expected to remain down due to better price realisations from the domestic market.