Indian billet export tender of 40,000 mt has received overwhelming response as global billet prices continue to rise. This tender was floated by a state owned company for January 2018 shipment.
According to industry sources, company has managed to receive highest bid close to USD 500/MT FOB India, however tender has not been concluded at the time of publishing this report.
Last tender by the company for same grade for 30,000 mt was concluded at USD 450-455/MT FOB India on 20th Nov 2017.
Indian billet exports have increased by 30% during Jan-Nov 2017, from 1.7 MnT to 2.3 MnT.
Rising prices in global market
Billet export offers in global market have increased sharply amid limited material availability in spot market.
Billet export offers from CIS nations have climbed by around USD 20/MT in a week’s time. Latest assessment stands at USD 510/MT, FoB Black Sea. Majority of the mills were reported to have sold out until Jan’18 and approaching New year Holidays may reduce material availability further as major mills may return to the market after the the holidays.
Absence of Chinese billets from the market has given an edge to the smaller mills who are seen offering in the levels of USD 510-515/MT, FoB Black Sea levels.
As per market sources, there are no offers for billets from GCC countries as most of the companies are booked till January. Qatar Steel has recently concluded a deal for 50,000 MT billets at around USD 500/MT, FoB.
Trade highlights
1. Iran’s ESCO concluded 20,000 MT billet at around USD 490/MT FOB, last week.
2. Saudi’s Hadeed is to delay billet exports due to an accident that took place in one of its furnace, according to sources.
3. Demand for re-bar has increased owing to unavailability of billets in spot market.
4. Imported billet offers to Egypt reach USD 540-545/MT CFR levels, which was USD 530-535/MT CFR last week.
5. Indian induction grade billet being offered at around USD 500-505/MT FOB levels.
6. Russian billet export offers are assessed at USD 510-515/MT FOB Black Sea.
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